Invercargill has been chosen as the country's seventh refugee settlement location, says Immigration New Zealand.
The service's general manager, Steve Gill, said the ongoing increase in the refugee quota, as well as fewer refugee families being settled in Auckland, meant an extra settlement area was needed.
He said the Southland city was chosen due to the wide range of employment opportunities.
Christchurch, New Plymouth, Rotorua and Tauranga were also considered.
The first group of refugees is expected to arrive in Invercargill later this year.