A new air quality bylaw has come into force in urban Rotorua, limiting the type of woodburners and pellet fires that can be installed.
The Bay of Plenty regional council says winter home heating is the main cause of Rotorua's air pollution, which is the worst in the North Island.
The council says the bylaw and the offer of interest-free loans as an incentive to switch to cleaner heating are important steps towards improving the city's air.
Building consents will only be issued when burners meet national standards.
From May next year, properties in urban Rotorua can not be sold if they have non-compliant solid fuel burners.
Open fires will be banned from May 2015.