The NT government says its amended liquor laws, which were passed by parliament late on Tuesday, will give communities "greater power" to choose if they want alcohol restrictions when the Intervention-era commonwealth law ends in July.
"The Stronger Futures legislation is one of the last living remnants of the Intervention, which was a race-based policy targeting Aboriginal Territorians," Chief Minister Nicole Fyles said in a statement.
"This government will not support continuing the mandatory restrictions and obligations of the Intervention."
Ms Fyles was critical of the Morrison government, saying it had "notified the territory at the eleventh hour that it would be walking away and leaving the NT government to clean up its mess".
"In line with our commitments to local decision-making and self determination, this bill empowers affected communities with a choice to decide what is best for their community," she said.
Under the law, communities must choose to remain alcohol-free. If they don't there will be no alcohol restrictions when the commonwealth law expires on July 17.
The NT government says extra support will be provided to communities that don't opt in to ensure alcohol returns "safely and that any risks are properly managed".
Some 430 community living areas, town camps and small communities will have to opt into the new scheme to remain alcohol-free.
About 100 communities will revert to the previous NT liquor restrictions in place before commonwealth law came into force in 2007.
NT Council of Social Service chief executive Deborah Di Natale says the new law is "disgraceful" and there was not enough consultation with Aboriginal communities.
"At best the government's process around these significant liquor changes, lacks integrity," she said.
Ms Di Natale called on the government to start "genuine" consultation as a matter of urgency.
The NT Aboriginal Medical Services Alliance has previously warned the law change would "open the floodgates" to alcohol in communities if they fail to ask the Liquor Licensing department to declare them dry.
"This is a dangerous move that could undo the good results of many of the NT government's own alcohol reforms," a spokeswoman said.
"If (communities) either do nothing or choose to let takeaway alcohol in, the upshot will be a mix of dry and unrestricted communities that will be impossible to monitor, with alcohol flowing freely between them.
"It's a recipe for disaster."
The territory has Australia's highest alcohol consumption per capita and rate of deaths attributable to alcohol, the NT Council of Social Service says.
Organisations including the Northern Land Council, Central Land Council, Central Australian Aboriginal Congress and North Australian Aboriginal Justice Agency have been contacted for comment.
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