A new primary school will be built in Rolleston, south of Christchurch, to address growing demands on Selwyn's school network.
Education Minister Erica Stanford made the announcement on Tuesday morning and said the funding will come from Budget 2024's $400 million investment into school property growth
Rolleston South Primary School will open in 2026 with an initial roll of 250 places for Years 1 to 8.
Its design will have capacity for 700 pupils with potential to expand further to accommodate up to 1000 students.
"Rolleston's rapid and dynamic growth is putting pressure on the South Canterbury school system," Stanford said.
"We are ensuring there are more safe, warm and dry classrooms for the community, so students receive a world-leading education".
Selwyn's school network has been under increasing pressure due to rapid population growth.
Data from Census 2023 showed the district was the country's fastest growing area, gaining 17,500 people in the previous five years.
In March, a community meeting was held in Rolleston where Education ministry staff were told some Rolleston College classes were being held in corridors due to its rapidly growing roll.
Stanford said Rolleston South Primary was one of three new schools the government would deliver as part of the 2024 Budget.
"This government is committed to giving our fantastic teachers the right environment to work in, so our children have every opportunity to succeed," she said.