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New Zealand functions as a constitutional monarchy with a parliamentary system of government. The basic system is closely patterned on that of the United Kingdom, although a number of significant modifications have been made. The head of state is Queen Elizabeth II, but actual government is conducted by a Prime Minister and Cabinet drawn from an elected Parliament.

New Zealand was originally settled by waves of Polynesians, some time between 1000 and 1300, although some evidence now suggests an earlier settlement. Those in the main islands of New Zealand became the Maori people. Separate settlement of the tiny Chatham Islands in the east of New Zealand produced the Moriori people, but it is uncertain whether they went there direct from Polynesia or were mainland Maori who ventured eastward.

The first Europeans known to reach New Zealand were the crew of Dutch explorer Abel Tasman's ships Heemskerck and Zeehaen, which anchored at the northern end of the South Island in December 1642 but sailed northward to Tonga following a clash with local Maori. Tasman sketched sections of the two main islands' west coasts. Tasman called them "Nova Zeelanda." The name Nieuw Zeeland appeared on charts of the area shortly afterward, having earlier been applied to an island near New Guinea. Lieutenant James Cook of His Majesty's Barque Endeavour made a fuller reconnaissance, surveying the shores of both islands in 1769 - 1770. Cook returned to New Zealand in both his subsequent Pacific voyages.

Immigration policy in New Zealand has often been controversial, with some politicians claiming that the pace of immigration has been too rapid for New Zealand to absorb, and that recent immigrants are having trouble adapting to the New Zealand society. This position is seen by others as a cynical appeal to xenophobic sentiment in order to gain votes near election time, and these views are not widely supported by the general population.

In 2004 it began discussing free trade with China, one of the first countries to do so.

Today New Zealand has 12 regional councils for the administration of environmental and transport matters and 74 territorial authorities that administer roading, sewerage, building consents, and other local matters. The territorial authorities are 16 city councils, 57 district councils, and the Chatham Islands Council. Four of the territorial councils (one city and three districts) and the Chatham Islands Council also perform the functions of a regional council and thus are known as unitary authorities. Territorial authority districts are not subdivisions, as such, of regional council districts and a few of them straddle regional council boundaries.

While New Zealand, like Australia, prides itself as being more egalitarian than Britain, there is a degree of inverse snobbery known as the 'Tall Poppy Syndrome', in which people who are seen as (over)ambitious and having ideas above their station are cut down to size. This is also known as the 'Great Kiwi Clobbering Machine', and has prompted many of the country's best and brightest to emigrate.