City and regional deals are formal agreements between central government and local or regional governments, often involving other partners, such as business groups, investors (including iwi) and educational institutions.

This paper draws on the New Zealand Initiative's extensive work on localism and international best practices to explore how partnerships between central and local government can empower communities to tackle their unique challenges and seize opportunities for growth.

The localist approach embodied in city and regional deals offers a way forward. These formal agreements bring together various stakeholders - central and local government, businesses, tertiary institutions, iwi - to align their efforts around shared strategies and investments tailored to a specific area. Crucially, they provide a pathway for devolving powers and funding to the local level, giving communities the tools they need to shape their own futures.

The research note delves into the different forms city and regional deals could take in New Zealand, from narrowly focused infrastructure partnerships to more ambitious devolution of powers and services. While large metropolitan areas might be the initial focus, the New Zealand Initiative argues for an inclusive 'local deals' framework open to smaller regions and iwi as well.