Negotiations are set to resume in Caledonia, Ont. on Wednesday in the on-going attempt to resolve an aboriginal land dispute, but the community's mayor is not optimistic that a breakthrough will be achieved.

Marie Trainer has reportedly said that there are too many people representing the Six Nations Confederacy during the talks.

Talks between the Six Nations and the federal and provincial governments broke down earlier this month after Chief David General was refused entry to the talks by other aboriginals.

Ontario Natural Resources Minister David Ramsay said he has received assurances that General will be allowed to participate in Wednesday's discussions.

Negotiations resume just days after the Ontario government offered $430,000 compensation to Caledonia homeowners affected by the on-going dispute.

The compensation offer has been called an insult by some residents, who will get between $2,000 and $6,000 for the more than year-long disruption in their community.

Opposition politicians lent their support to unhappy residents. Opposition Leader John Tory called the offer "pathetic" and NDP Leader Howard Hampton said it was "woefully inadequate."

The governing Liberals called on the federal government to also offer a compensation package.

Premier Dalton McGuinty said he will be interested to hear what Ottawa plans to do to compensate residents and the provincial government for costs it has incurred.

The compensation money announced Monday was in addition to $1.4 million Queen's Park gave to local businesses to make up for lost revenues when the community's roadway was blocked. Haldimand County also received $210,000 for marketing and $100,000 to pay for counselling for residents.

The Ontario government also purchased the property development at the centre of the dispute. The land is being held in trust by the government until a negotiated settlement can be reached.