Grandson Rod Smith said the name "Austin Reid" represented a man of considerable fortitude with a "lifetime of service" to his community, including 36 years of continuous public service.
"My grandfather wasn't just a man that gave service to his community, he gave service to his family."
He said as a family they felt privileged their relative's name would be honoured.
"The foundation of our country was built by people like him."
Reid's daughter Pat Smith, who cut the ribbon, thanked the council, developers and her daughter Sylvia, and wished the future homeowners "happiness and prosperity for life".
The opening included a cheque donation of $2100 by the subdivision's developer, Rudy van Baarle, towards the Masterton Motorplex, which chairman Bob Wilton accepted.
Mr van Baarle said they were a committed sponsor of the Motorplex.
He said the new stage was 35 properties and demand was already there, having sold their last property in the previous stage.
"This will be a hive of activity over the next two years."
He said Carterton was the fastest growing North Island district and he liked being part of that.
"Build it, and they will come", he quoted from movie Field of Dreams, saying two-thirds of their sales have come from former Wellingtonians.
"These are modern new homes, high quality, affordable value."
Carterton mayor Ron Mark said the choice of street name was one he was very happy to endorse in council, saying it had "true meaning".
The subdivision was another indication that "we're rocking" in Carterton.
"That's due to people like Rudy, coming in, giving the community the opportunity to grow and meet the demand.
"These people have a determination, a belief, a vision, money - and they invest that money."
