More than $1.5mil is being funded to support youth employment in Opōtiki.
Employment Minister Willie Jackson says the funds will go towards two pilot projects as part of the He Poutama Rangatahi initiative.
He says one in eight people under 25 years old aren't earning or learning - a harsh reality in regions such as the Eastern Bay of Plenty.
Funding will go towards two programmes in addition to a distance learning hub so youth can enter tertiary studies without leaving the town.