Work to improve water quality in Mangonui Harbour and an upgrade of the town's waterfront are the latest winners from the Government's Covid-19 Response and Recovery Fund.
Infrastructure Minister Shane Jones announced the grants totalling $6.5m on Saturday.
Popular holiday spots Mangonui and Doubtless Bay were suffering the effects of the Covid-19 pandemic and the resulting loss of international tourists, Jones said.
A sum of $5m would be allocated to the NZ Transport Agency to address water quality problems at the head of Mangonui Harbour, where a causeway built for State Highway 10 had reduced tidal flows into the estuary beyond.
As a result the estuary was now choked with mangroves and sediment, to the detriment of wildlife and water quality in the catchment, Jones said.