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Miss Allan joined the Taieri College team in the 2004 merger with Mosgiel Intermediate, teaching year 7 and 8 pupils, and had previously filled the roles of assistant principal and deputy principal.
She said her passion had always been in the primary sector and after taking part in the National Aspiring Principal Programme, she had set her sights on a primary school principal position.
Although looking forward to her new role, Miss Allan said she would be sad to leave Taieri College.
''It has been a fantastic school to be part of.
''The kids here are just great.''
She said the new job would be a big change, moving from a primary sector of about 600 pupils to the two-teacher school of 25 pupils.
But there were benefits to a small school, and she was looking forward to becoming part of the community.
''The school and community go hand in hand,'' she said.
Miss Allan takes up her new job on August 11.
Taieri College principal David Hunter said the school was sad to see her go, but was excited for her.
''It is a wonderful opportunity for Kim to lead a school.
''Lee Stream are very fortunate to have someone of Kim's experience and expertise,'' he said.
Present Lee Stream principal Phil Wheeler had been in the role for three and a-half years and had enjoyed being part of the school.
''The children are wonderful to teach,'' he said.
He was offered the principal's role at Netherby School in Ashburton in May and is due to start on July 21.
He said he was looking forward to the move, but was leaving with a ''heavy heart''.
- Bridget Rutherford