A small Far North community is acting as a role model for other small towns in New Zealand.

Paihia's, Focus Paihia Community Charitable Trust was set up in 2009, allowing members of the community to put forward ideas on how to improve the village.

The trust has since funded a number of projects such as a water pontoon and public art displays, gaining them recognition as community of the year.

Treasurer Sarah Greener is encouraging other communities to do the same.

"It's really important to get everyone on board because there'll be really clear things about your community that people love and people hate and you'll probably find there's a real clear consensus.

"Then once you've got that direction, then you need to start actually doing something towards it."

Sarah Greener says the trust will be launching a guideline for other small towns at the community board's conference in Paihia next month.