The Ministry of Education approved of the scheme for Logan Park High School, which means the school will have a home zone, a geographically defined area around the school.
Students within the zone are guaranteed a place at the school while students outside can apply for remaining places.
Logan Park High School co-principal Kristen Mouat said the school had been working on its application for the scheme with the Ministry of Health for about a year, and had experienced growth in the school roll for more than two years.
Yesterday the school roll was 712.
"It just means we can stay between 700 and 750, which is a nice size for us. We’re keen to preserve what we are, 700 is a nice size where you know all the students names and their families."
The scheme will begin on July 20, and the home zone extends from the southern end of central Dunedin north to about Seacliff.
"We made a plea that we wanted it to be reached for 2021. Enrolments for secondary schools close on August 13."
About 70% of current enrolments taken would be within the home zone. About 30% would be offered to those from out of the zone.
The exact number of out-of-zone enrolments could not be determined until applications for enrolments closed.
Out-of-zone applications would be taken with a priority system, and if needed, a ballot.
Ms Mouat said the school was "feeling positive" about the decision.
"Ours is a wonderful community school with a beautiful location and facilities and we want to keep it that way."
