It would involve the creation of special recreational cannabis clubs where people could take the drug in a controlled environment, with profits going back to the government.
It is an idea proposed by Massey University drug researcher Dr Chris Wilkins, who says it would bring benefits on a number of levels.
"What the club do, is people would just join the club and that would allow them to purchase cannabis how they like," Dr Wilkins told TVNZ's Breakfast today.
"It would be in a controlled structure in terms of the club and the club could only purchase cannabis from the government so there would be some control over the supply."
Mr Wilkins says club members could only buy the approved cannabis products - edibles and vaporised products.
He says there have been recreational cannabis clubs in some European countries for quite a while now.