Wanganui ratepayers will be able to decide their own rates increase this year in a referendum.
The initiative is thought to be a first for New Zealand and will give the public a choice of three levels of rates increase.
A zero rates increase will not be one of the options.
The district's mayor, Michael Laws, said "Referendum 09" is an effective democratic process, potentially involving 18,000 people.
"Every other council relies on a couple of hundred self-interested busybodies and lobby groups to turn up and tell you what they think's best for the community," he said.
Michael Laws said the referendum is not binding but the district council is not likely to ignore the result.
