Collective commitment: Otago Central Lakes Regional Deal signed

On 6 October 2026, representatives of central government, Queenstown Lakes District Council, Central Otago District Council and Otago Regional Council met on the shore of Lake Wakatipu to sign the Otago Central Lakes Regional Deal (the Deal).

The Deal sets out a 10-year partnership between the signatories, underpinned by a shared 30-year vision to harness the sub-region’s growth, support its tourism sector and build a more diverse and resilient regional economy.

The announcement continues the Government’s City and Regional Deals programme, after the signing of the Auckland City Deal and the Western Bay of Plenty Regional Deal earlier this year. The programme signals a coordinated approach to long-term growth planning, infrastructure delivery and housing enablement in some of New Zealand’s fastest-growing regions. The Government has signalled all three long-term agreements will continue, regardless of election results next month.

Property Council welcomes the new agreement. For over a decade, the Otago Central Lakes sub-region has been grappling with increasing numbers of residents and visitors, putting pressure on housing, transport, energy and essential services. A joint commitment between central and local government to collaborate on long-term infrastructure and growth planning is a critical step in the right direction.

So, what’s the Deal

Think of it as a long-term partnership designed to get central and local government working together on the planning, investment and infrastructure needed to support growth.

For the property sector, that coordination is particularly important. More people want to live in the region, more people want to visit, and businesses want to invest, putting increasing strain on housing, transport, energy and essential services. The Deal provides a framework to face these challenges collaboratively, with a focus on unlocking investment and enabling development.

While the Deal doesn’t commit the parties to any specific projects or initiatives, it’s important to note the level of Government financial support that may be available to the sub-regional councils because of the Deal. This will provide a higher level of certainty for our sector that planned infrastructure and services will be delivered.

 The Deal sets out commitments across eight priority areas:

• affordable and quality housing
• reliable transport
• energy resilience
• health services
• attracting investment and talent
• enabling key sectors
• funding and financing mechanisms,
• partnership for growth.

Housing

Of most interest for our sector, the housing commitments include working with the developers to explore measures to increase affordable housing such as: inclusionary zoning, value capture, build-to-rent, employer-led housing for key workers, and voluntary partnerships between developers and community housing providers.

Infrastructure funding

The Government’s commitment to investigate options to contribute funding to growth projects in the sub-region is particularly noteworthy. Options include sharing a portion of mining royalties with Otago Central Lakes councils, contributing funding towards growth projects funded via asset recycling, and international visitor conservation and tourism levy funding.

Transport

Coordinated transport planning and delivery will address congestion issues and accessibility, and improving productivity and creating new opportunities for development. The Deal includes commitments to explore passenger ropeways as public transport, additional river crossings over Kawarau and Shotover, time of use charging and parking initiatives, and improvements to Cromwell SH6 intersection to support fast-track developments.

Other key commitments

The Deal also includes commitments to scope a new hospital for the sub-region and support a new University of Otago Campus in Queenstown. To address energy security, affordability and resilience, Government and councils will consider a Ratepayer’ Assistance Scheme, including a Property Improvement Loan.

What does it mean for the sector?

For the property sector, the biggest opportunity is greater certainty around how growth will be planned and supported. The region has significant development potential, but housing and investment cannot be unlocked without the infrastructure and services to support them. The Deal provides a framework for central and local government to better coordinate those decisions over the long term.

It will be important to see whether the commitments will translate into infrastructure delivery at the pace required by growth. The Deal is a framework rather than a fully funded programme. Its success will depend on the governance arrangements and the ability of all parties to turn the agreed priorities into action.