Measuring about 80sq m inside, the yurt was purchased from the US and is made of architectural fabric.
It has double-glass French doors and large windows - something not currently available with New Zealand-made yurts.
The couple has also added a huge deck around it, as well as an outdoor bathroom and wood stove that had to be helicoptered in because of its size.
Their home is completely solar-powered and like most structures of its kind, has no internal walls.
The yurt itself cost about $55,000.
Getting everything they needed to Kawau Island and the overall setting up of their new home set them back about $200,000.
"In terms of what we got, it's a very affordable house.
"We didn't want a mortgage. We've been paying a mortgage in the North Shore and weren't getting ahead. We were tired of all of our hard work just going to pay the mortgage."
Asked why they chose a yurt as their permanent home, Duder-Wood said simplicity and sustainability were the key reasons.
"I'm a great believer that the earth - we really need to look at how we're using the earth's resources.
"My husband [is] really in to horticulture, biodynamics and gardening. So we really want to model what we believe - that we need simplicity and sustainability. Just learn to have less and need less and live much more connected to nature."
Being able to call Duder's Bay - her family's slice of the island - home was not only a wonderful thing, it was paradise.
"I've been there since I was in the womb. I got married on our beach, my sister's ashes are buried there and my niece and nephew's whenua are buried there.
"To live there, what it means is I come in to Auckland, I do gigs and recording sessions, teach, perform and work as a working artist and then go home."
Her latest gig is Menopause, The Musical: Women on Fire, currently showing around New Zealand. The show follows four women in a department store who have nothing in common but a black lace bra they want to buy.
There are jokes about wrinkles, hot flushes and chocolate binges - all with the clever use of popular songs from the 60s, 70s and 80s.
Duder-Wood said it was about celebrating the mid-life crisis and menopause.
"It's celebrating it, but also poking fun at ourselves.
"There are also really poignant moments about the pressures on women to remain youthful looking - when things are drooping, wrinkles are appearing and the reality of menopause...are occurring.
"Apparently men love it too because they sort of nudge their wives and say: 'Oh, that's you, darling'.
Duder-Wood is now working on a new book dubbed: Home Is Where The Yurt Is.
