Mr Hamada and a delegation are in Rotorua this week following a visit to Beppu earlier this year by Mrs Chadwick, who was impressed with the Onsen spa and wellness offerings of the Japanese city, known worldwide for its geothermal attractions and hot springs.
During a tour of Kuirau Park today the two mayors announced the sister cities would work together on the development of a Beppu Onsen in Rotorua.
"We want to have something tangible of Beppu to mark our 27-year relationship as sister cities," Mrs Chadwick said.
"Mayor Hamada and I have agreed we will start this Beppu Onsen development in Kuirau Park jointly.
"It's very exciting for us, I've seen it in Beppu and thought it was something we should have back in Rotorua."
The agreement reached today to work on the project together was the first concrete step towards making it a reality, Mrs Chadwick said.
"We will now look to attract investors and partners to make this happen."
She and Mr Hamada had spoken about potential partnerships during her visit to Japan and concepts had been drawn up for the Beppu Onsen idea, she said.
The concept is a wooden construction - in line with Rotorua's WoodFirst initiative - incorporating existing lake-edge foot pools, a wooden platform extending over the lake and a communal steam kitchen.
Situated by the lake, it is envisaged the Beppu Onsen development will link with the activity hub located in that part of the park, incorporating the children's playground, the area used for the weekly Rotary markets and the former tea house used by Friends of the Rotorua Library for fortnightly book sales.
Mr Hamada, through an interpreter, said he was very happy to be in Rotorua and was excited about the plans for a Beppu Onsen.
He was keen to share his city's knowledge and experience to make the concept a reality "and make it a very wonderful place", he said.
Mr Hamada hosted Mrs Chadwick in April during celebrations to mark the 100th anniversary of Beppu's famous Onsen festival. The Beppu delegation was welcomed to Rotorua yesterday with a powhiri and mayoral reception at the Rotorua District Council and is spending today and tomorrow experiencing Rotorua attractions, sights and activities before flying home tomorrow.
PIC: The proposed Beppu Onsen concept for Kuirau Park shows the geothermal lake bottom left corner with the deck overhanging the lake, the steam kitchen area to the left and to the right, the existing foot pools. The market area is behind the foot pool with the old tea house building behind the steam kitchen area.