"It is used in the production of multiple different products including antifreeze, brake fluids, wallpaper strippers, and as a plasticiser."
High Alert strongly urged people not to take the substance.
The substance was described as being a thick liquid with no smell. It was clear, colourless, practically odourless and with a sweetish taste.
High Alert said early symptoms include nausea, vomiting, and abdominal pain, as well as inebriation.
"Other symptoms can be delayed more than 48 hours after use including abnormal urination, abdominal/lower back pain, weakness, and shortness of breath."
It was unclear how widespread the circulation of the substance was, but ingestion could cause severe kidney and neurologic injuries in humans and could be fatal.
Drug checking services would likely be able to test for diethylene glycol, High Alert said, and KnowYourStuffNZ was running regular drug checking clinics over the summer.
Earlier this month Police warned partygoers about a new drug which was been detected in the country for the first time.
Synthetic cathinone dimethylpentylone is a new substance a which is reportedly being sold as MDMA.
Very little is known about the drug and police are "strongly" urging people not to take the substance.
High Alert say the drug is a pink pill with a "Playboy" logo. It is approximately 1cm long and is also detected as white crystal.
Dimethylpentylone was found in two samples tested by KnowYourStuffNZ in Dunedin.
The person who brought in one of the samples for checking said they had taken the substance and described the experience as "very unenjoyable".
Health Minister Andrew Little announced that the funding will be for national co-ordination of services, training of drug-checkers and providing information about the harm that drugs do.
He said the Government was supporting drug-checking services to help keep young people safe at this summer's large festivals and events.
"This is not about condoning drug use, but about keeping people safe," Little said.
"There is clear evidence that having drug-checking services at festivals changes behaviour and reduces harm."
Last summer was the first time that drug-checking services, in which drugs are checked to see if they are what people think they are, were made legal.
Only people who are fully vaccinated against Covid-19 will be allowed to attend events and festivals.
