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The New Zealand region category is a group of smaller regions that are located in the same area. These smaller regions are usually grouped together because they have similar features, like climate or culture. An example of this would be the states in America. They are all grouped together because they are located in the same area and have similar laws and cultures.
A region category is a way of sorting things into groups. One way to think of it is like different countries in the world. Each country is its own region, and within each country there are different regions too, like the North and South of America.