Legislation to overhaul the way councils are run is set to be passed into law.
The Local Government Amendment Bill is intended to control local body spending and debt by requiring councils and other local authorities to focus on core services.
It also allows government ministers to more easily intervene in a council's affairs if a problem is identified.
The bill passed its final reading in Parliament today by 61 votes to 59, supported by National, United Future and Act.
Its opponents say the legislation is anti-democratic and has been rushed through.
Local Government Minister David Carter said the changes will help councils to play their part in growing the economy.
Legislation to radically revamp the way local councils are run has passed its final reading at Parliament.