This would allow each geographic area to identify their specific health needs so services could be allocated to them.
They were designed to maintain some local decision-making in the new, centralised health system.
There are 12 localities already in place and the remainder were meant to be in place by June, with local plans required by June 2025.
Reti told Cabinet the aim of the localities had been to support localism and encourage integration between public services.
“In practice, implementation has been slow and there is a lack of clarity for communities and the health workforce,” he said.
The localities were also a way for new iwi-Māori partnership boards and the Māori Health Authority (MHA) to exercise joint decision-making with Health New Zealand.
“With the disestablishment of the authority, I do not intend to progress localities,” Reti said.
“I have instructed Health New Zealand to stop work on localities pending further legislation.”
He said community involvement in health service planning would remain “essential” to the delivery of services.
While he did not identify an alternative to localities, he said iwi-Māori partnership boards and community providers would play an important role in maintaining community involvement.
Reti has previously said he does not want to undertake further structural change of the health system because health workers were exhausted after going through major reforms during a pandemic.
When he took on the portfolio, officials warned him about further structural change, saying there was “significant ... change fatigue” in the health system.
“The next couple of years will be important for stabilising, consolidating and refining the new operating roles and functions of key entities, including the changes resulting from the disestablishment of the MHA.”
Isaac Davison is an Auckland-based reporter who covers health issues. He joined the Herald in 2008 and has previously covered the environment, politics, and social issues.