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Your fine in NZ. Its totaly legal to own and run sites. You can host with a NZ company, but it just wouldnt be worth it to be honest because of the cost.
Broadband is available in all towns and cities, just be careful if you are looking at a more rural location. There is a satalite system for those out of town, but it is downstream only and upstream is dialup. Its pretty useless for webmasters.
Where are you thinking of moving to in NZ? I lived there for 10 years and know most of the country pretty well, especially the South Island.
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