Team sports can also continue, but are limited to 100 people. Professional leagues will be able to return as they are considered controlled workplaces, but will take place without fans.
The drop in alert levels outside of Auckland is set to have a positive impact on rugby in particular.
It opens the door for most teams in the NPC, Farah Palmer Cup and Heartland Championship to resume training.
However, with Auckland staying at alert level four for at least another week, likely followed by a period at Level 3, resumption to competitions remains up in the air and would require teams in the greater Auckland areas to relocate.
New Zealand Rugby will provide an update on the competitions tomorrow morning.
The New Zealand women's NBL could also resume if Auckland-based teams were willing to move.
Auckland's alert level and the move to Level 2 for the rest of the country will be reviewed next Monday.