Hawke's Bay District Health Board has admitted defeat over attempts to put restrictions on chemists wanting to set up new pharmacies.
The board's funding and performance general manager says until now, it has required new pharmacies wanting to dispense drugs to set up business in an area of high health needs.
Win Bennett says the plan has not worked.
The board has now decided that any new chemist shop will be given a community pharmacy service contract once it is fully licensed.
Mr Bennett says the decision brings Hawke's Bay DHB into line with the rest of New Zealand.
