The Corrections Minister says it was wrong for her department to release a child sex offender from prison into a home just metres from a school in Auckland.
The man was released in May after serving more than 14 years for the rape of a 13-year-old girl, and is under supervision.
The principal of the Auckland school found out the man was living next door after he was caught on camera making lewd gestures to children walking past.
Corrections Minister Judith Collins told Parliament's justice and electoral committee the school should have been informed the man was living there.
"Corrections was wrong, my preference is always that the schools know, that people know what they've got in their community.
"But individual case matters, those are matters that Corrections has to make their calls on."
But she said it was not mandatory for Corrections to inform schools if a sex offender had moved into their neighbourhood.