Preservation of Kawai Nui Marsh has taken a giant step forward with the transfer of ownership from the city to the state.

On Friday, the state officially became the sole owner of the 800-acre Kailua wetland. The transfer clears the way for restoration work, and the U.S. Army Corps of Engineers plans to begin restoring an 80-acre pond that is home to four endangered and endemic water birds. Work could begin as early as late 2009.

"This is the largest remaining wetland area in the state," said Paul Conry, state Department of Land and Natural Resources division of forestry and wildlife administrator. "When we restore it, it will greatly increase the wetland habitat for endangered waterbirds."

The wetland is home to the Hawaiian stilt, the Hawaiian gallinule, the Hawaiian coot and the Hawaiian duck, Conry said.

A number of other projects that have been languishing for years could be kick-started by the change in ownership.

The marsh was once home to the state's largest ancient freshwater fishpond, and is located in the center of a former shield volcano. Over the past 150 years, the marsh has variously been used for fishing, taro and rice farming, and cattle grazing.

Not content to wait for the city or state to protect the area, the community began the odyssey to restore the wetland area in the early 1980s.

Hundreds of volunteers, led by 'Ahahui Malama I Ka Lokahi, the Kailua Hawaiian Civic Club, and the Windward Ahupua'a Alliance and the Kawai Nui Heritage Foundation have logged thousands of hours since 1999 clearing and restoring many of the marsh's cultural features.

They have spearheaded the restoration of the Ulupo Heiau on the southern end of the marsh and development of a 28-acre cultural site nearby. Other groups have consistently organized cleanup campaigns throughout the marsh area and worked to open more features and sites to the public.

In 2005, the area was placed on a global listing of important wetlands called the Ramsar List.

Mayor Mufi Hannemann said the transfer had been a goal of his since taking office in 2005.

"We were determined to bring the parties together to resolve this long-standing dispute," Hannemann said in a prepared statement. "This agreement will allow the community to make the marsh the wonderful natural treasure it can be."

Hannemann went on to thank Mitch D'Olier of Kaneohe Ranch, Terry George, executive director of the Harold K.L. Castle Foundation, and state Sens. Jill Tokuda and David Ige for their roles in the successful completion of the transfer of ownership.

Conry said the state has been working on the marsh project already.

"Now we own it all and we can fully develop the project," Conry said. "We'll be looking at this project's benefits for decades to come."