Signs are being replaced in Kinloch - a small town near the top of Lake Taupō - after sign-makers spelt the town's name wrong.
The new signs went up in the first week of December after a new speed limit was introduced and was accidentally spelt "Kinlock" instead of Kinloch.
Taupō District council chief executive Gareth Green said the contractor was given the correct spelling when the council ordered the sign.
"It was either our contractor or the sign manufacturer at fault."
He told 1 NEWS the cost of the new signs would be completely covered by the contractor and not at the ratepayers' expense.
Mr Green said before Christmas an adhesive letter (h) was placed over the incorrect letter as a temporary solution until a new sign could be manufactured.
He said someone peeled that letter off and in the new year another temporary letter was placed on the sign which again was peeled off.
Mr Green said the new sign is currently being manufactured and locals will see their new town sign installed next week.
1 NEWS spoke with some of the locals who seemed to find the misspelling quite amusing.
Nikki, who declined to give her last name, says, "I laughed, it’s highly amusing and rather annoying, it’s like spelling someone’s name wrong no one wants that".
Xanthe Sando who works at the Tipsy Trout agrees with Nikki and says residents are just finding it quite comical.
"Everyone’s finding it funny around here, no one’s taking it too seriously."
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