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After five years in charge, Walter has led the Otago Volts through a period of significant change which has resulted in quality development of high-performance systems and processes, team culture and player development.
Along with the recent elevation of Jacob Duffy to the Black Caps, Michael Rae, Nathan Smith and Michael Rippon have all been elevated to NZA.
The Volts have competed in three playoffs including two finals over the past two seasons.
The hunt for a new coach will start immediately, Otago Cricket said.