The outback Territory town of Ali Curung is attempting to forge peace and heal community tensions after a violent riot broke out in November last year.

It was understood the fighting began as a result of the deaths of four young people after their vehicle broke down on an outback road, stirring up anger within the community.

The Federal Government has now provided $80,000 to hire a mediator and the Territory Government has committed an extra $25,000 to the cause if it is needed.

Ali Curung community leader and Allawara man Peter Corbett said he trusted the mediation program to help the community move past the "blame game".