Mr Anderton, who died yesterday two weeks short of his 80th birthday, subsequently led the Alliance and Progressive parties. He was deputy prime minster in the Helen Clark government from 1999 to 2002.
In recent years, he was a face of the successful effort to save the earthquake-ravaged Christchurch Cathedral.
The founding of Kiwibank is seen as a major ongoing legacy.
Former prime minister Helen Clark and former finance minister and deputy prime minister Michael Cullen later both accepted they were wrong when they initially opposed Mr Anderton’s dogged push for its establishment.In his valedictory speech in Parliament in 2011, he said the deal over Kiwibank was only achieved after months of debate. Cabinet minister Annette King had eventually told Dr Cullen, "For God’s sake, give him the bloody bank."
"In equally immortal words, Michael Cullen replied: ‘Oh, all right then’," Mr Anderton said.
It was the neoliberal policies of Labour that led to Mr Anderton’s 1989 split from the party. He had been suspended from the Labour caucus the previous year.
Mr Anderton represented the Sydenham and then Wigram electorates in Christchurch from 1984 to 2011. When he retired from Parliament he was the longest continuously serving MP.
The previous year he had challenged Bob Parker for the Christchurch mayoralty. He was leading in the polls until the September earthquake, after which Mr Parker surged ahead.
Mr Anderton held several Cabinet portfolios, including economic development and agriculture, the latter from 2005 to 2008.
Mr Anderton, who was made a Companion of the New Zealand Order of Merit last year, was educated in Auckland and was involved in the Catholic Youth Movement for a time. He taught for two years before becoming child welfare officer in Whanganui for the then education department.
Former MP Matt Robson, who is making a film about Mr Anderton’s life, said his close colleague thought he could provide better life for his family by starting a business.
"He started a grocery store, a franchise, and from there he moved to the engineering business he started with his brother in Penrose."
It manufactured supermarket trolleys.
Mr Anderton had also worked as a textile export manager.
He was deeply involved in the Labour Party, joining in 1963 and being elected party president in 1979.
Mr Robson said he was driven by a passion for social justice.
Mr Anderton was also always concerned with mental health issues. A daughter committed suicide in 1994.
He and his wife Joan (nee Caulfield) had two girls and three boys.
Mr Anderton’s father, Matthew Bryne, was killed in train accident when the young Jim was 5 or 6.His mother, Joyce, married Victor Anderton, a storeman, who adopted Jim in 1951.