The Government's new housing and infrastructure company is being described as transformational.

Crown Infrastructure Partners, is being set up at cost of $600 million. 

Its first job will involve building infrastructure to support 23,000 new homes in Auckland.

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Infrastructure New Zealand chief executive Stephen Selwood told Mike Hosking similar companies have proven successful in the US.

"They're more like cooperatives in fact and they roll out the infrastructure and the house prices are much lower in the United States simply because the supply is so strong."

He said the company could help drive prices down, through a large increase in supply.

"This sort of model is extensively used overseas. In the United States they have what they call municipal utility districts that do the same sort of thing."

The company will receive funding from government, the private sector and targeted rates.

LISTEN ABOVE AS STEPHEN SELWOOD SPEAKS WITH MIKE HOSKING