The Government is proposing a governance model similar to the Auckland Council for regions like Northland that have voted to reject a super city-like structure.
Under the proposed changes, regions like Northland will be encouraged to integrate their core services such as water or transport across council boundaries.
Regions that took a more integrated approach, allowing the Government to work more closely with them, could be in line for a funding "top up" from central government. Announcing the proposals Local Government Minister Paula Bennett said: "Without a doubt there are regions in New Zealand that have got increasing expenditure needed in core infrastructure and looking at it in a piecemeal fashion by council boundaries is not in the best interests of a region as a whole."
This approach did not deliver results for ratepayers or create an environment in which business could grow, she said.
In the past three months, Northland and Wellington have voted against amalgamating their councils.