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The first new local government statute to be brought before the New Zealand parliament in almost 30 years has brought significant changes which are informed by a participatory democracy paradigm. Notwithstanding the significance of these innovations, we question the extent to which these changes can be construed as a reinvention of local government in New Zealand. It is argued that the Act expresses a model of collaboration between central and local government and communities embodied in the ideology of the ‘Third Way’, a political programme which aims to renew social democracy by including civil society as a partner in managing the economy. However, as strong as these new attributes are, the drive behind the Act must be considered an example of the centre-left being pragmatic, not of fundamental reform.
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