Two police investigations have cleared Wellington Mayor Kerry Prendergast of wrongdoing during last year's local body elections.
Ms Prendergast was accused of breaching the Local Electoral Act.
The first complaint related to anonymous donors whose identities were allegedly known - but not disclosed - by her.
But Detective Inspector Mike Arnerich says a so-called "blind trust" used by Ms Prendergast for donations does comply with the law.
Police have also dismissed a complaint accusing Ms Prendergast of falsifying her election expenses return.
Ms Prendergast says the publicity generated by the accusations has been very upsetting and her vindication takes a huge weight off her shoulders.