Local Government Minister David Carter says proposed legislation aimed at controlling council spending has received good support from councillors and mayors.
The Local Government Amendment Bill will go through its first reading in Parliament this week.
Under the legislation, local authorities face a radical revamp including restrictions on being involved in the social, economic, cultural and environmental well-being of their communities.
They will be expected to focus on providing good quality local infrastructure, public services and regulatory functions at the least possible cost.
The legislation has been criticised by opposition parties for restricting core council services.
But Mr Carter says central Government has imposed tough fiscal constraints on itself and it's time for local government to follow suit.
He says councillors and mayors around the country have been supportive of the legislation once it's been fully explained.