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The Central Otago District Council has agreed to join forces with other South Island councils to help save money and pursue joint projects.
The South Island Strategic Alliance (SISA) was mooted in the middle of last year as members of South Island councils decided they needed to work more collaboratively.
Under the alliance, a body will be formed that can make recommendations to constituent councils and central government. It will hold no decision-making authority.
It is expected there will be meetings of the mayor and chief executive of each alliance member twice a year.