On Monday, representatives of Ngā Ruahine and Ngāti Ruanui joined with the mayor and deputy mayor, council staff, neighbouring landowners and staff from Taranaki Civil for a karakia and turning of the first soil.
Taranaki Civil was awarded the contract to create the subdivision.
The names of the four new streets in the subdivision will be announced soon, following a Council competition asking for Shakespearean-themed suggestions.
After the karakia, led by John Hooker of Ngā Ruahine, the mayor officially turned the first soil.
He said the location gives views of the maunga and he was confident the sections will sell fast.
"It really will be a first class subdivision, and is helping get Stratford growing again."
Jim Turahui, of Ngāti Ruanui, said he was pleased iwi were present at the soil turning and agreed with Mayor Volzke that the view was great.
"From up on the mountain, the view down to here is good, so of course the view from here up to the mountain is a great view too."