Kununurra Airport is now wholly-owned and managed by the Shire of Wyndham-East Kimberley.
The formal change in ownership follows presentation of a cheque for $351,000 to the Shire last night by North-West Minister Ernie Bridge.
The payment from the State Government honours a commitment to fund airport upgrading at Kununurra.
Mr Bridge said Kununurra Aerodrome was built by the State and, until 1985, operated and maintained by the Public Works Department.
The Shire subsequently took over operational control with the State agreeing to finance existing capital works. The 1985 agreement qualified the aerodrome for funding under the Commonwealth's Aerodrome Local Ownership Plan (ALOP).
"The Commonwealth decided to divest itself of funding for aerodromes in 1990 and made a one-off payment of $878,000 to the Shire," Mr Bridge said.
"Yesterday's payment, which follows $252,000 already paid by the Department of Transport for upgrading, honours the State's commitment to the Shire under the 1985 agreement."
Mr Bridge said while neither the Commonwealth or the State now had any formal role in relation to ownership, operation or funding of the aerodrome, the Government had not lost interest in Kununurra or air transport in the Kimberley region.
"We have recently reaffirmed a strong commitment to developing international air links with North-West airports," he said.
"Once in place, these air links should facilitate the development of tourism and trade opportunities into and out of the Kimberley region in particular."
Mr Bridge said one objective was to tap into the growing adventure tourism market which was particularly strong in Germany, France and Italy.
"We are also keen to enhance trade links into South East Asia to help local producers tap into the vast export opportunities that exist there for both horticulture and agriculture," he said.
Mr Bridge said the State was also committed to a better range of options for domestic air travellers and was confident there would be growth in more direct links between the North-West and Eastern States capitals.