Maori Development Minister Te Ururoa Flavell and Building and Construction Minister Nick Smith say a new housing development will be used to help house Maori families who lost their homes in April's Edgecumbe floods.
The development will be built south of Edgecumbe and will eventually be used for affordable housing for the elderly but Ngati Awa iwi have said it will initially be used to help those affected by the floods.
The Maori development minister has called it "manaakitanga at its best" and a great example of "what can be achieved when parties come together to collaborate.”
Five two-bedroom houses will be built along with power, water, sewerage and roads for 41 housing sites.
Dr Smith says he commends the start of the project and that the Pahipoto Maori committee "have been quick to bring forward plans to respond to immediate whanau needs within their rohe."