The Premier said he had not taken the decision lightly and he conceded there could be criticism nationally and even internationally.
2009 Australian of the Year Professor Mick Dodson this week condemned compulsory acquisition as an invasion and theft.
“I expect there will certainly be some angst,” Mr Barnett said.
But he claimed he had been “remarkably patient” in trying to negotiate an agreement.
He said the disputes that had now arisen between the local Aboriginal people, who were divided on the plan, had simply stymied the process.
The area involved is unallocated crown land at James Price Point, 60 km north of Broome.
Mr Barnett said $1.5 billion of benefits would flow to the traditional owners under a ‘heads of agreement’ signed last year between Woodside, the state government and the Kimberley Land Council before the negotiations broke down, and that agreement would be honoured under the compulsory acquisition.
He said the benefits, including jobs, business opportunities, health, education, housing and training opportunities as well as cash, would help end welfare dependency.