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New Zealand's most popular sports are rugby (primarily rugby union but also rugby league), soccer (the most popular sport amongst children), cricket, and netball (the sport with the most players); golf, tennis, rowing and a variety of water sports, particularly sailing. Snow sports such as skiing and snowboarding are also popular. Equestrian sportsmen and sportswomen make their mark in the world (Mark Todd being chosen international "Horseman of the Century"), and all the way down to the juniors at pony club level.

New Zealand (like Fiji) decided against joining the Commonwealth of Australia in 1901, and instead changed from being a colony to a separate "dominion" in 1907, equal in status to Australia and Canada. New Zealand retained an avowed loyalty to the British Empire of which it formed a part, and contributed proportionally large numbers of troops to aid Britain in the Boer War (1899 - 1902), World War I and World War II (see New Zealand in World War II). New Zealand's complete independence was formalised by the 1926 Balfour Declaration and the 1931 Statute of Westminster, ratified on November 25, 1947. The monarch of the United Kingdom remains the monarch of New Zealand, which has been an independent constitutional monarchy. In 1951, the Legislative Council was abolished as ineffectual, thereby creating a unicameral legislature.

Because of its long isolation from the rest of the world, New Zealand has extraordinary flora and fauna. Until the arrival of the first humans just a millennium or two ago, 80% of the land was forested and, barring two species of bat, there were no non-marine mammals at all. Instead, New Zealand's forests were inhabited by a diverse range of birds (many of them flightless), reptiles, and insects—some of them almost the size of a mouse (see weta).

The original settlers were moa hunters, a favourite food source being the large flightless birds which were not unlike ostriches and rheas. Moa were quickly pushed to extinction, since they were not adapted to human or mammalian predation. Before the coming of humans, the moa were the prey of the harpagornis or Haast's eagle, the largest bird of prey ever recorded. Harpagornis became extinct along with its prey. The moa-hunters may have merged with later waves of Polynesians who, according to Maori tradition, arrived between 952 and 1150. Some of the Maoris called their new homeland "Aotearoa," usually translated as "land of the long white cloud."

In October 1990, the National Party again formed the government, for the first of three, three-year terms. In 1996 New Zealand elected its first MMP Parliament. The system was designed to increase representation of smaller parties in Parliament and appears to have done so. Since 1996, neither the National nor the Labour Party has had an absolute majority in Parliament, and for all but one of those years, the government has been a minority one. The current Labour government followed its November 1999 election success by outpolling National 41 per cent to 21 per cent in the July 2002 general election. Labour formed a coalition, minority government with Jim Anderton's Progressive Coalition, a left-wing party (subsequently named "Progressive Party") which holds two seats in Parliament.

In recent years the government has sought to address long-standing Maori grievances. Parliament established a Waitangi Tribunal in 1975 to hear claims of official violations of the Treaty of Waitangi, and in 1985 the Tribunal gained the right to consider Crown actions dating back to 1840. A programme of widespread economic de-regulation and privatisation of public enterprises undertaken by the Labour government of 1984 - 1990 continued under its National Party successors. In 1986 the Constitution Act came into force, and in 1993 the majority of New Zealanders decided to change the electoral system from the British system of single member constituencies elected by 'first past the post', to a form of proportional representation called Mixed Member Proportional (MMP).

After the Second World War, significant immigration from the Pacific Islands began, so much so that there are now more nationals from some Pacific island nations living in New Zealand than on their home islands. The wide variety of Pacific Island cultures has combined in New Zealand, mostly in South Auckland, to form a distinctive subculture that is separate from the Maori culture.

Sporting and outdoor activities still play a significant part in the recreation of New Zealanders. Participation in a sport, rather than mere spectating, is considered a worthy pursuit. Team sports and sporting abilities are generally held in high regard, with top-performing players often becoming celebrities. However, New Zealanders can often be scathing when national sports teams and athletes lose.

British culture in New Zealand has been significantly influenced by Maori and other Polynesians. Scottish influences are strong, mainly in the South Island. In general, early immigrants from other parts of Europe and Asia, and World War II refugees (particularly the Dutch) were readily assimilated.

New Zealand's head of state is the Queen of New Zealand, currently Elizabeth II. The New Zealand monarchy has been distinct from the British monarchy since the New Zealand Royal Titles Act of 1953, and all Elizabeth II's official business in New Zealand is conducted in the name of the Queen of New Zealand, not the Queen of the United Kingdom. In practice, the functions of the monarchy are conducted by a Governor-General, appointed on the recommendation of the Prime Minister.

New Zealand imports much of its cultural material from overseas, particularly from Britain or the United States. Most successful Hollywood films screen on New Zealand cinema screens and New Zealand Television shows a lot of British and American television programmes. It is somewhat ironic that some of these programmes are now made in New Zealand but receive their first screening elsewhere. The New Zealand cinematographic industry is becoming one of the country's major export enterprises, with several major motion pictures being filmed on New Zealand locations recently, including the highly acclaimed film adaptation of Tolkien's "The Lord of the Rings" directed by the Kiwi Peter Jackson.

Self-government was granted to the settler population in 1852, under the UK Parliament's New Zealand Constitution Act 1852, with a General Assembly consisting of an appointed Legislative Council and an elected House of Representatives. In 1867, Maori won the right to a certain number of reserved seats in parliament. During this period, the livestock industry began to expand, and the foundations of New Zealand's modern economy took shape. By the end of the 19th century, improved transportation facilities made possible a great overseas trade in wool, meat, and dairy products.

The total land area of New Zealand, 268,680 km², is somewhat less than that of Japan or of the British Isles, and slightly larger than Colorado in the USA. The country extends more than 1600 km along its main, north-northeast axis.

Since 1876, local government has administered the various regions of New Zealand. Due to its colonial heritage, New Zealand local government was modelled fairly closely on British local government structures, with elected city, borough, and county councils. Over the years some of these councils merged or had boundary adjustments by mutual agreement, and a few new ones were created. In 1989, the government completely reorganised local government, implementing the current two-tier structure of regional councils and territorial authorities.