The Ministry of Health announced on Wednesday the sale of nicotine e-cigarettes and e-liquids would be legalised.
The announcement was influenced by the government's goal to make New Zealand smokefree by 2025.
Associate Health Minister Nicky Wagner said the scientific evidence of the safety of e-cigarettes was developing, but there was a general consensus that they were less harmful than smoking.
She said it was an opportunity to help lower smoking rates, reduce harm and save lives.
E-cigarettes are an electric device that mimics tobacco smoke by heating a flavoured liquid that users can "vape".
E-cigarettes not containing nicotine are currently legal.
The decision has been praised by Canterbury locals.
Christchurch's Cosmic shop sells e-cigarettes and employee Geordie Lauder said the product gets more popular everyday.
Lauder said he thought the legalisation of the nicotine-based products would support people trying to quit smoking.
"I think it offers more security for people who are trying to quit smoking. They know what they're moving onto is good, approved and legal."
He said the shop already sells up to 50 e-cigarettes a day, as people see first-hand that the product actually works.
