Ms Shaw was elected in October 2019 and said serving the Upper Clutha and Queenstown Lakes community had been "an honour and privilege".
"I stood for election because I wanted to make a positive difference within council on behalf of residents. I’ve never taken for granted the fact that this community trusted me to represent them authentically at the council table. For these reasons, the decision to stand down has been huge and complex," Ms Shaw said.
A priority throughout her time had been to earn the trust the community placed in her, by improving transparency, accountability, democratic process and oversight within the council, she said.
"Serving as a councillor has been tricky and thrilling and frustrating and incredibly varied in scope, and I am incredibly grateful to have been granted the opportunity to fulfil it. There are several factors that have informed my decision, both personal and professional," she said.
Ms Shaw is originally from Limerick, Ireland and has lived and worked in London and Dubai.
After 10 years of living in Dubai, where she met her husband, she and her husband moved to New Zealand in 2008, spending time in Auckland and Marlborough before moving to Oamaru to be close to her partner’s family in Maheno.
The family of four shifted to Wanaka in 2017.
Ms Shaw said she was excited for the next chapter and was "currently working on a couple of community projects, and excited about what the future holds".
Local election voting runs from September 16 to October 8.
