The Bill that sets out the next steps in Christchurch's recovery, which was previously mired in controversy, has passed its second reading unanimously.
Labour and the Greens last month withdrew their support for the Greater Christchurch Regeneration Bill because they thought it gave the Government too much power.
Earthquake Recovery Minister Gerry Brownlee negotiated a way through, with both sides making concessions, and achieved cross-party support.
"There has been give-and-take in this process as we've further developed the legislative back-up needed for Christchurch's regeneration," he said.
"It has always been my preference to have broad parliamentary support for what is a very important piece of legislation."
The Bill establishes Regenerate Christchurch, the organisation that will take over from the Canterbury Earthquake Recovery Authority when it shuts down next month.
Regenerate Christchurch is a partnership between the Government and Christchurch City Council.
Labour's Megan Woods says the Government has shifted its position and is going to allow greater local input into decisions affecting the city.
The Bill will become law when it passes its committee and third reading stages.