Local Government Minister Nanaia Mahuta decided last year to appoint a commission to the troubled council, citing concern over "significant governance problems".
The decision followed a tumultuous start to the council term that has seen three of the 11 elected members resign, including first-term mayor Tenby Powell.
An independent review in November identified significant governance problems within the Council, and in December, Mahuta made the decision to appoint a commission.
"The commission is necessary to put Tauranga in a stronger position for the future," she said in a statement today.
"The council is facing substantial infrastructure and funding challenges that need to be addressed in its 2021-31 Long-term Plan. My decision to appoint four commissioners strikes the right balance between the significant decisions that need to be made and the important task ahead in rebuilding the relationship between the council and the Tauranga community.
"In appointing these commissioners, I have carefully considered the right skills and experience to deliver the Long-term Plan, restore public confidence in the council, recognise the strategic growth challenges, working with iwi and develop a pathway to return the council to an elected membership in October 2022."
Tolley said in a statement she was pleased to have been appointed as the chairwoman of the commission.
"As New Zealand's fifth-largest city, it is important that Tauranga is governed effectively. This will be a big challenge for the commission.
"I am looking forward to working with the other commissioners and the people of Tauranga to address the council's problems and return the city to full local democracy as soon as possible."
The commission's term is expected to begin on Tuesday next week and end after the triennial local authority elections on October 8, 2022.
Government advisors have previously suggested it could be extended to 2025 if considered necessary.
The terms of reference for the commission will be made available in the New Zealand Gazette.
Tauranga City Council also issued a statement welcoming the appointments.
Acting chief executive Christine Jones said staff looked forward to working with the commissioners to address the city's pressing, growth-related issues.
She said the council's executive team had prepared a "comprehensive" briefing paper for the commissioners.
"Amongst the many critical matters they will be tasked with is the delivery of our 2021-31 Long-term Plan and we anticipate a period of intense community engagement leading into the development and adoption of the draft plan for formal consultation.
"The senior management team looks forward to meeting and greeting the commissioners when they take up their appointments. Staff are committed to working closely with the commissioners."
Some councillors have previously spoken out against the move to appoint a commission, calling it undemocratic.
