The appointment is part of a shake-up at the top which will see Insp Campbell become policing development manager after 12 years as area commander.
Insp Sparrow, who has recently been relieving area commander in both the Eastern Bay of Plenty and Rotorua, has previous experience in the South.
He was in charge of Dunedin Police's Intelligence Section from 2001 to 2005. He also worked in Oamaru as a sectional sergeant for a period.
His appointment continues a move to a more proactive policing approach, Southern District Commander, Superintendent Bob Burns said.
"Inspector Sparrow brings a wealth of experience in leading intelligence-led policing models and has an impressive record of achieving significant crime reduction results.
"The Southern District has made a number of recent changes to allow a more proactive focus and Inspector Sparrow is looking forward to building on the gains that have already been made."
Insp Sparrow will take up his position next week.
