Auckland Council is giving the go-ahead for a congestion charging scheme to be designed.
The 'time of use' charging could reduce Auckland's traffic by 8 to 12 percent, the council said, referring to a Ministry of Transport report from 2020.
The charge would speed up traffic without waiting for expensive and unaffordable motorways to be built, Auckland mayor Wayne Brown said.
"This will make roads less congested for Aucklanders," he said.
"It's about making the most of what we have and bringing Auckland in line with similar cities. It's a tried and tested solution, and one that's relatively low-cost."
The scheme could apply at different times or in different locations.
The council was counting on it to help increase public transport use and reduce carbon emissions.
A host of stakeholders will provide input for the design which will then be thrown to the public for consultation.
If successful, the scheme will be launched alongside the City Rail Link in 2026.
But Ōtara-Papatoetoe Local Board chair Apulu Reece Autagavaia said in May that the proposal did not consider the needs of South Auckland households. Private vehicles were a need for a lot of the community, who did not have a reliable alternative, he said.
Auckland Transport will look at sharing technology with Waka Kotahi New Zealad Transport Agency to cut the costs of setting up the city's congestion charging scheme.
It is not yet known which roads will incur a charge, how many cameras will be needed and how the charge will vary during peak times.
RNZ