The Prime Minister has unveiled the government’s long-awaited reform of the Resource Management Act (RMA). Framing it as the end of New Zealand’s “culture of no,” Luxon and RMA Reform Minister Chris Bishop announced a complete replacement of the decades-old RMA with two new pieces of legislation—the Planning Act and the Natural Environment Act—by the end of 2025.
The reforms are a foundational reset of how land use and environmental decisions are made in New Zealand, but with their scale and ambition come deep ideological and political rifts. For supporters, it’s the economic liberation the country needs. For critics, it’s a dangerous dismantling of hard-won environmental and Treaty protections.
From 1,175 Zones to 13
At the heart of the reform is a radical simplification of the planning regime. The government aims to reduce New Zealand’s 1,175 land use zones to something closer to Japan’s streamlined 13-zone system. That shift is expected to cut through bureaucratic red tape and unlock nationwide consistency, making it easier for developers and infrastructure planners to operate across regions.
Standardisation is central to the reform’s economic promise. An independent analysis by consultancy Castalia estimated the new system could generate a $14.8 billion benefit, comprising $11.3 billion in compliance cost reductions and $3.5 billion in reduced administrative costs. By comparison, the previous Labour-led government’s reforms were projected to deliver a 7 percent cost reduction; Bishop claims the new blueprint could yield a 45 percent improvement.
“Right now, every individual council determines the technical rules of each of their zones,” Bishop said. “In Japan, which utilises standardised zoning, they have only 13.” Standardising these zoning rules, Bishop argues, will take pressure off ratepayers and make it easier to build more homes for Kiwis.
A Property-Rights First Approach
If Labour’s reforms leaned toward central coordination with strong environmental considerations, this government’s overhaul shifts the balance decisively in favour of individual property rights.
That logic reflects a pivot from the RMA’s effects-based planning to one rooted in managing “externalities.” In practice, that means local councils will no longer have a say in matters that impact only the property owner, such as interior apartment layouts or private open spaces. Even regulations that previously controlled trade competition will be off the table.
This is “a radical transition to a far more liberal planning system,” Bishop said, “premised on the enjoyment of property rights.” He added that “lawfully established existing use rights” will be protected, including the ability to reasonably expand current activities over time.
Under the new legislation, landowners may also be entitled to compensation in cases of regulatory takings—a concept that, while common in jurisdictions like the United States, represents a significant shift in New Zealand’s legal landscape.
Treaty Principles Scrapped
Perhaps the most contentious aspect of the reforms is the exclusion of a Treaty of Waitangi principles clause. Unlike the current RMA, which requires decision-makers to consider Treaty principles, the new bills will only honour existing Treaty settlements. Cabinet has explicitly ruled out a generic Treaty clause.
This decision goes against the recommendation of the government’s own Expert Advisory Group, which had advocated for retaining the clause and providing clearer guidance on its implementation. Instead, the government appears to have aligned with a minority dissent from the group, authored by a Federated Farmers representative, which proposed a less robust Treaty provision.
Labour leader Chris Hipkins called it “a step backwards,” warning that the absence of Treaty references in laws governing natural resources undermines Māori rights and New Zealand’s constitutional commitments.
What Comes Next?
With legislation expected to be introduced before the end of 2025 and passed before the next election, the timeline is tight. Councils are expected to begin implementing the new regime by 2027, aligning with their long-term planning cycles.