The country's major parking operators have signed up to a voluntary wheel clamping code of conduct.
Consumer Affairs Minister Simon Bridges says this code clearly sets out what people can expect from the parking enforcement industry.
He says it includes strong requirements for clear signs, a cap on fees and details the situations when clamping can and cannot occur.
Mr Bridges says most of the major industry players have signed up to the code. "I'm optimistic that the voluntary code will work," he says.
The code will come into effect on 1 October, which Mr Bridges says will give companies time to ensure they are in full compliance.