Designated Special Character schools were created under the New Zealand Education Act of 1989 which allows the Minister of Education to establish two types of special character schools under Sections 155 and 156 of the act.
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Section 155 schools
Kura Kaupapa Māori (Māori-language immersion schools), where the principal language of instruction is Māori. Kura Kaupapa Māori differ from the earlier Kohanga reo in that Kohanga reo are immersion kindergartens whereas Kura Kaupapa Māori are immersion schools.
Section 156 schools
These are identified as Designated Character Schools, under Section 156. The special character of schools established under this section is not specified in the Act, and parents may propose any desirable special character as long as no other local school is already delivering an education reflecting the same special character.