Katikati is a town in New Zealand (North Island) located on the Uretara Stream near a tidal inlet towards the northern end of Tauranga Harbour, 28 kilometres south of Waihi and 40 kilometres northwest of Tauranga. State Highway 2 passes through the town; a bypass scheduled to have begun construction in 2008 is on hold. Katikati has become known for its many murals painted on walls of commercial buildings. These were started in the 1990s to regenerate tourist interest in the town and district, and led to the town being recognised New Zealand's 'Most Beautiful Small Town' award for towns of less than 8,000 population in 2005 by the Keep New Zealand Beautiful Society. In 2018, Katikati was named "Avocado Capital of New Zealand . Besides its avocado orchards, there are many kiwi-fruit orchards in and around Katikati. There are hot springs three kilometres to the south of Katikati at Sapphire Springs.