The Ministry of Justice was working with local iwi, the community, the Whanganui District Council, New Zealand Police and other agencies to design and build the new site "with principles of community-led wellbeing outcomes", a statement said.
The new courthouse is expected to open in 2025.
The courthouses were part of the 10-year infrastructure investment plan to restore and modernise Ministry of Justice buildings, Faafoi said.
"The buildings will address the safety needs of all participants, including victims, be more family-friendly, and meet physical accessibility requirements for all building users.
"We want to create court facilities which meet the physical, social, emotional, cultural and spiritual needs of New Zealanders. They will also support the Chief District Court Judge's Te Ao Mārama vision for transforming the District Court."
The Minister for Courts, Aupito William Sio, said these new courthouses would support the delivery of wrap-around services for both victims and offenders through the potential co-location of social and community sector agencies on their premises.
"For the first time in Aotearoa New Zealand, courthouses will be designed in partnership with the local community, the judiciary, and local iwi and hapū," William Sio said.
"The Tauranga and Whanganui courthouses will reflect local tikanga Māori as well as Te Ao Māori values."
Faafoi said the new courthouse projects would also bring jobs and associated economic activity to the Tauranga and Whanganui regions.
More than $150 million was approved to build a new courthouse for the High Court and District Court in Tauranga on land next to the current courthouse between Monmouth and McLean Sts.
