The Whanau Ora Commissioning Agency for the South Island was launched in Christchurch on Monday.
Nine iwi authorities in the South Island, Te Wai Pounamu, will receive funding from Te Putahitanga for their social welfare contracts.
The Minister for Whanau Ora, Tariana Turia, launched the agency at Nga Hau e Wha Marae in Otautahi.
She said the creation of Te Putahitanga o Te Waipounamu, alongside the two other Whanau Ora commissioning agencies, Te Pou Matakana and Pasifika Futures, represented a significant milestone in a journey that started in 2009 with the establishment of the Taskforce on Whanau-Centred Initiatives.
The establishment of the funding agency means that Te Puni Kokiri will no longer be responsible for distributing money to iwi authorities and hauora, or health organisations.
Events were held at the same time in Otautahi (Christchurch), Murihiku (Southland), Otakou (Otago), Tai Poutini (West Coast), Whakatu (Nelson), and Wairau (Marlborough) to mark the occasion.