The Government are providing the Tauranga City Council with a 10-year interest free loan of $158 million for the development of major projects, intending to improve drinking and waste water infrastructure.
The Waikato District Council will also receive a $38 million interest-free loan to support new housing developments, which includes "expanding water supply, reservoirs and reticulation, and a new waste water treatment plant, pipeline and treated water disposal", Minister of Housing and Urban Development Phil Twyford said in a statement.
It comes as housing demand rises in the Bay of Plenty and Waikato, with the infrastructure upgrades to the Te Maunga Wastewater Treatment Plant and the addition of a new Waiari water treatment plant intending to provide water and waste water for 35,000 homes in Tauranga.
Mr Twyford said while a lot of focus had been placed on Auckland's housing issues, "there are signs that Auckland's housing issues are moving south".
"Councils in high growth areas like Waikato are keen to speed up housing developments, and funding towards infrastructure will go a long way to ease pressures on these councils."
The loans would come out of the $1 billion Housing Infrastructure Fund.
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