The Redfern Tent Embassy is claiming a victory, after Federal Indigenous Affairs Minister Nigel Scullion arranged a deal for 62 new affordable homes for Aboriginal people.
Ms Munro said the year of struggle had paid off.
"I'm old school. My teachers taught me the principles of our resistance - we never ceded our land to anyone," she said.
"The embassy has demonstrated that for our people, resistance is the only way to go.
"For all the communities around the country facing closure - don't talk sovereignty, assert your sovereignty."
Progress on Aboriginal housing 'big win'
Her lawyer, Lisa De Luca, said this was a big win.
"Had it not been for the hard work of Jenny Munro and the supporters at the Redfern Aboriginal Tent Embassy, my opinion is that [Indigenous Affairs Minister] Nigel Scullion would never have come to the table with this offer," she said.
"Before the embassy was set up there was no finance for this development, either commercial or Aboriginal housing, and Aboriginal housing didn't look like it would ever be built.
"Now there's a deal before the Aboriginal Housing Company being offered on the basis that they build Aboriginal housing first or at the same time as the commercial property, so it's a wonderful result."
Ms De Luca said the Government has committed to a $5 million grant and helped the AHC secure $65 million in bank finance so it could proceed with the project.
Senator Scullion said the deal was "a win for everyone".
"It has been a very vexed issue, people have been divided on this matter for quite a long time in the area," he said.
"Congratulations to the Tent Embassy and Jenny Munro and what I consider significant leadership in these matters."
Senator Scullion said the best outcome for The Block has been achieved for the community.
"Everybody wants, on Aboriginal land, affordable housing for Aboriginal people," he said.
"I have a sense that everyone is working far closer together than they have been in the past."
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