More than 200 KiwBuild houses will be built over the next two years in Wanaka, the first KiwiBuild development in the South Island.
The Minister of Housing and Urban Development Phil Twyford announced on Sunday that the first 10 of 211 KiwiBuild houses will be built as part of the Northlake development.
Ballots for those homes will open on October 8, with Mr Twyford hoping to restore "the Kiwi dream of home ownership to thousands of families who have been priced out of the housing market in the Queenstown Lakes District".
The 10 homes will include four two-bedroom and six three-bedroom modern homes, and will be priced from $565,000 to $650,000, which is the HomeStart and Welcome Home Load price caps for Queenstown Lakes District new builds.
The Northlake development will compromise of more than 800 homes.