Local Government Act 1974

Roads (other than regional roads), service lanes, and access ways - Formation, alteration, stopping, and closing of roads

341: Leases of airspace or subsoil of roads

You could also call this:

"Councils can rent out the space above or below roads to people for building things, as long as it's safe and follows the rules."

Illustration for Local Government Act 1974

The council can lease the airspace above a road or the subsoil beneath it to anyone. You can lease it for part of the airspace or subsoil. The lease must not break any rules in the Resource Management Act 1991.

When the council leases airspace, they must make sure there is enough space for vehicles and pedestrians to pass through. Any buildings or structures you put up in the leased airspace or subsoil are considered rateable land under the Local Government (Rating) Act 2002. This means you will have to pay rates on them.

The council can lease the airspace or subsoil for building a bridge, tunnel, or subway to connect two pieces of land on either side of the road. They can set their own terms and conditions for the lease. The Public Bodies Leases Act 1969 does not apply to these leases.

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This page was last updated on 10 September 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM420499.

Topics:

Government and voting > Local councilsHousing and property > Land use

340: Motor garages, or

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341A: Contribution to cost of railway, subway, or bridge, or

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Part 21Roads (other than regional roads), service lanes, and access ways
Formation, alteration, stopping, and closing of roads

341Leases of airspace or subsoil of roads

Subject to section 357(2), the council may—
grant a lease to any person of the airspace or any part of the airspace above the surface of any road; or
grant a lease to any person of the subsoil or any part of the subsoil beneath the surface of any road:

provided that no such lease shall be granted for any purpose that would be in contravention of any provision of the Resource Management Act 1991:

provided also that, in exercising the powers conferred by this subsection in relation to any airspace, the council shall ensure that sufficient airspace remains above the surface of the road for the free and unobstructed passage of vehicles and pedestrians lawfully using the road.

Any improvements erected or constructed in any airspace or in any subsoil pursuant to a lease under this section shall be deemed to be rateable land for the purposes of the Local Government (Rating) Act 2002.
Nothing in this section shall be construed so as to restrict any right a council may have to permit any person to use for a temporary period any part of the surface or of the airspace above the surface of any road.
The council may grant a lease to any person under subsection (1) for the purpose of the erection or construction and maintenance of a pedestrian or vehicular bridge or tunnel or subway connecting any land or building on one side of the road with any land or building on the other side upon such terms and conditions as it thinks fit.
The Public Bodies Leases Act 1969 shall not apply with respect to any lease granted under this section.

Notes

Section 341: inserted, on 1 April 1979, by section 2 of the Local Government Amendment Act 1978 (1978 No 43).
Section 341(1): amended, on 23 December 2023, by section 6 of the Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023 (2023 No 68).
Section 341(1) first proviso: replaced, on 1 October 1991, by section 362 of the Resource Management Act 1991 (1991 No 69).
Section 341(2): amended, on 1 July 2003, pursuant to section 138(1) of the Local Government (Rating) Act 2002 (2002 No 6).
Section 341(2): amended, on 1 July 2003, pursuant to section 143(1)(c) of the Local Government (Rating) Act 2002 (2002 No 6).