Napier is leading the country when it comes to local authorities regulating psychoactive substances, Associate Health Minister Todd McClay says.
Mr McClay has welcomed the ongoing work of local authorities in developing local authority product plans (LAPPs), of which 22 are in various stages of development, with Napier's policy coming into effect late last year.
He said the product plans had resulted in the decline of a retail licence under consideration by the Psychoactive Substances Regulatory Authority in Napier.
"I applaud Napier for being the first local authority to implement an LAPP.
"That Napier's plan has resulted in the declining of an interim licence application shows that these policies do have teeth, which is exactly the reason the Government included the mechanism in the Psychoactive Substances Act."
Tukituki National MP Craig Foss said: "The Bay is leading the charge against this stuff as we transition through to full enforcement. Maybe, at least in Hastings, it could be because the main shop selling is very central and visible."
The Hastings plan was also under way, Mr Foss said.
Mr McClay said the authority was writing to all local government chief executives yesterday, stressing the role councils could play through development of LAPPs and offering assistance with the process.
All licences, including interim licences, must adhere to LAPPs.
"Parliament was determined that councils have real authority to regulate where these products are sold in their regions and the Psychoactive Substances Act gives them precisely that power," said Mr McClay.
Further regulations are due for consultation in mid-February.
Legal high manufacturers now face an estimated $180,000 in application fees, plus $1 million to $2 million in testing costs for each product they wish to sell.