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This paper analyses the Waipara wine cluster, located in the South Island of New Zealand, in relation to formation, operation, evolution and impact. The unique methodological approach of this research is that it analyses the current and desired future state of the cluster and secondly examines the cluster in relation to both the domestic and international markets. Key findings from the research include a greater understanding of the relationships between cluster members, the operation of cluster, problems within the cluster and how the cluster operates for both domestic and international markets. The research lends itself to a new definition of internationalisation –‘direct and indirect methods of increasing the likelihood of international sales’– and also provides new insights for cluster theory, wine clusters and the wine industry in general. Some of the practices detailed have use in the wider wine community of the world, making the paper of interest to a wide audience. [ABSTRACT FROM AUTHOR]