New legalisation and a development authority will be introduced this year as the Government changes its oversight of the Christchurch rebuild.

The Prime Minister has told 500 business leaders that the Greater Christchurch Regeneration Bill will be introduced to replace CERA’s special powers.

John Key said it will apply to a much smaller area, and core provisions will be updated.

He said in an effort to speed up lagging anchor projects, an organisation called Regenerate Christchurch will also be set up.

"The Earthquake Recovery Minister will work closely with the mayor on how this new organisation will operate."

"We expect it will work along the lines of an urban development authority, and deliver on both the government and city council's objectives."

It will work in with the Christchurch City Council, as it slowly takes back responsibility for the central city over the next few years.

Earthquake Recovery Minister Gerry Brownlee said it’s likely they will keep some supervision within the CBD for the next five years before handing back to council.

"If we were just to walk away and say Council, it's yours, and then for some reason things didn't happen, well the Council would be in the gun."

"This way we work together."