South Taranaki residents were baffled by a study that said Hāwera and Eltham were among the worst in the country for quality of life.

According to researchers, the South Taranaki towns of Hāwera and Eltham are among the worst places in New Zealand to live and do business - but locals say that's rubbish.

A study from the Motu Economic and Public Policy Research tracked 130 towns and cities across New Zealand for the past 37 years and looked at the correlation between the cost of living and wages to determine the attractiveness of a town.

Whitianga, Motueka, Coromandel, Queenstown and Katikati were named the best places to live, but Hāwera and Eltham ranked alongside Winton and Tokoroa as the worst.

Catherine Groenestein Carac Group managing director John Burling said there was no problem with operating a global business from Eltham - he does just that.

Eltham businessman John Burling, who owns award-winning Carac Group, which exports engineering products across the globe, said the study was "nonsense".

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"I'm Gobsmacked. We love the place and we have family here, there's no traffic problems and we have great staff as well who have been with us for a long time.

"Eltham's a great place to work from and we sell our products all over the world from there, it's a great place to do business from."

Cameron Burnell/ Fairfax NZ Chester Borrows said resaidents in Hāwera could teach the rest of the country a thing or two about what it meant to be a Kiwi.

Former National MP Chester Borrows, who lives in Hāwera, said South Taranaki had the highest GDP rating per head of population due to the oil and gas and dairying industries based in the district.

"The decision-makers that rated Hāwera and Eltham as having the lowest quality of life have a very shallow understanding of the principles that have built Aotearoa New Zealand," he said.

"If sitting on the beach totally self-absorbed is a measure of quality of life, then fine.

"But if adding to New Zealand, knowing and caring for your neighbours and exhibiting a real Kiwi attitude, is the real measure we can show the rest of the country how to do it while they take selfies at Kaiteriteri and chink their champagne glasses in the Coromandel."

Robert Charles It's no Queenstown but Hāwera residents are loyal to their town.

South Taranaki Mayor Ross Dunlop was also surprised with the study's conclusion.

"The study was done in 2013 so it's old news now. I don't know why they bring this stuff up as it's not relevant," he said

"We're aware of the importance of lifestyle and have great options here with the parks, beach and bush, we have good schools and great sports facilities.

Brittany Baker Eltham was rated as one of the four worst places in the country for livability and to do business. On the plus side it has "no traffic problems", Burling said.

"We have a wonderful coast with some of the best surfing in New Zealand and also great fishing."

"I've lived here all my life and have bought up our family here, we're totally committed to the place."

Kris Boult Business owner Barbara Valintine, from The Bank in Eltham, says you've got to make your own happiness wherever you live.

Business owner Barbara Valintine, from The Bank in Eltham, which sells a range of vintage and retro wares, was also sceptical about the research.

"I question the study and who they spoke to in the small towns.

"Wherever you go you create your own happiness and you shouldn't expect the town to do it."

Peter Johnstone, of New Plymouth, who runs a stall at the Hāwera mall, said the liveability of the area depended on what people wanted.

"If you're after lots of concerts and fancy restaurants and lots of events all the time it's the wrong place," he said.

"But if you're after a good place to bring up kids and affordable housing then it's good."