Minister for Urban Development and Transport Phil Twyford visited Hamilton on Wednesday to view the progress in the south of the city where a new river bridge, and 20,000 residents will be part of the Peacocke suburb.
Peacocke is Hamilton's southern-most growth area, where the council is investing to create Hamilton's newest suburb, with funding from the Government and NZ Transport Agency.
"If we don't allow the city to grow, housing will become more expensive and we know also if we don't build the proper enabling infrastructure such as transport then we simply add to congestion on the road," Mr Twyford said.
"These are vital investments, now and into the future."
The Peacocke programme will deliver a new bridge, main roads, parks, and strategic water, wastewater and stormwater networks. Other work includes protecting and enhancing the environment, including the extensive gully system, and investigating community facilities which are also important parts of creating a new community in Peacocke.
Hamilton mayor Andrew King said the vision of the Government was what the city, and the region needed.
The new bridge over the Waikato River, which will connect to the Wairere Dr/Cobham Dr interchange, will be a critical gateway into Peacocke and connect the new suburb with the rest of the city. When completed, Peacocke will be home for tens of thousands more Hamiltonians.
National MP David Bennett, who was part of the last Government who began funding the Peacocke development said Hamilton needed the money to grow.
"This will open up a third of the Peacocke suburb, it doesn't open up the whole lot but it allows Hamilton the chance to start development in the south which has been lacking recently," Mr Bennett said.
"It's alright planning it on paper, like they planned a lot of the north but then just put a load of houses down and are now filling in with community infrastructure later, we need to see that changing in the future."
Mr Bennett also said the Government will also need to keep an eye on the education aspect with Hamilton schools at capacity, saying that students in the new suburb must be given a place to learn.
Hamilton based Labour list MP Jamie Strange said that planning ahead with infrastructure for alternative forms of transport such as cycleways and bus lanes will be crucial for the new suburb. He said it's now time for Hamilton to start growing evenly, up and out.