In New Zealand, existing area-based indices of deprivation were inadequate
because of lack of theoretical underpinning and use of comparatively large
areas resulting in masking of variation within them. There is growing deman
d for small area based indices of deprivation for the purposes of resource
allocation, research, and community advocacy. This paper describes a new Ce
nsus-based index of deprivation based on the smallest possible geographical
areas using existing Census boundaries. The index uses deprivation variabl
es selected according to established theory, and derived from the 1991 New
Zealand Census. Ten age and gender standardised variables were combined usi
ng principal components analysis. Each variable is a standardised proportio
n of people in a small area with a lack of a defined material or social res
ource. Age/gender standardisation is important to avoid confounding and to
improve the performance of indices in resource allocation formulae. The ind
ex correlates highly with mortality, hospital discharges, lung cancer regis
trations and childhood immunisation status.