The Department of Building and Housing says it is considering another 17 sites in Canterbury to be used as temporary accommodation villages.
Housing Minister Phil Heatley visited the nearly complete Kaiapoi village on Wednesday morning, saying it is likely to be the first of many because demand is outstripping supply.
In six weeks, part of the Kaiapoi domain has become a full functioning temporary community with 22 houses ready for tenants within two weeks.
During the tour, department staff told the minister that about 200 people had said they are in desperate need of temporary accommodation.
Mr Heatley says it is likely the initial three sites in Linwood, Kaiapoi and New Brighton will quickly fill to capacity.
Seventeen other sites which the minister will not name are being assessed for suitability.
Mr Heatley says feedback from displaced residents shows they want plenty of smaller villages so that they can remain near local facilities such as schools.
Rental agencies have questioned the need for temporary homes, saying there is many empty private rentals available.
