Massey University has banned all watches from the exam room after the release of the new smart watch.
University spokesman James Gardiner said their exam rules were updated in March.
"The concern that prompted the change was the ability to access the internet via a smart watch so the logic is the same as the ban in exam rooms on using laptops or smart phones.
"The reason for applying it to all watches is that it is not considered practical to examine every watch worn by exam candidates and even if it were, there are, I am told, smart watches being manufactured that are virtually indistinguishable from other watches."
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Mr Gardiner said it was vital that the university maintained the integrity of the examination process in order to uphold confidence in the quality and value of its qualifications.
The university had not, to date, had any reports of cheating with a smart watch.
Massey is not the first university to put a ban on watches. The Guardian newspaper reported last week that watches were banned from City University in London while those at Southampton must place all watches in a clear plastic bag on the desk. At Goldsmiths watches have to be stored under desks.
At Queen Mary, University of London, students must take off electronic watches, while at Oxford and Cambridge, students' watches are "subject to examination by invigilators".