The Government and Christchurch City Council have agreed on what they're calling "a unique partnership" to oversee the city's post-quake regeneration.
A joint entity funded by the Government and the council is to be established.
It will be called Regenerate Christchurch and it will have an independent board.
It will be tasked with overseeing the long-term development and enhancement of the central city, the residential red zone, New Brighton and other potential regeneration zones.
The partnership was announced today by Earthquake Recovery Minister Gerry Brownlee and Christchurch's Mayor Lianne Dalziel.
"The groundwork has been laid for this regeneration and we are now at a point of being able to take significant steps forward in the development of a truly vibrant region," Mr Brownlee said.
"It's a unique partnership and offers a new way of thinking about how central and local government could operate in future."
Ms Dalziel says it's a first for New Zealand.
"It signals a shift in focus for Christchurch from recovery to regeneration," she said.
"The structure of the new entity allows for community engagement in the decision-making process, which is crucial to the future prosperity of our city."
Legislation will have to be passed by Parliament, because there's no provision under current law for the shared responsibility that's envisaged.