A childcare centre and a sex parlour are running out of the same apartment building in the Wellington central business district.
Early Years, a childcare centre for about 60 children under six, is on the first floor of the Leeds St building, while the parlour is on the fourth, the Dominion Post reports.
Fiona Hughes, the licensee of Kidicorp that owns the centre, says she has spoken to the council to see whether the brothel has a right to operate in the building.
"Most businesses seem to have issues with the type of people that might be attracted. We just don't believe we have any legal avenues (to stop them)."
Hughes says staff at the centre have been told and parents will be notified.
The sex parlour owners Li Dan and her husband, Jason Shao, live in the apartment building and also run The Lovely Lilly brothel in Mt Victoria, which stirred up controversy this year when neighbours took the Wellington City Council to the High Court over its decision to grant the brothel resource consent.
Li says there are more than a dozen similar businesses in the central city.
"I don't understand why we get all the attention. It's also very discreet. There are only two women working in two rooms at a time," she says.
"Arrangements with clients are by appointment only, and clients usually arrive on time, are admitted into the building, and go straight to the parlour."
Parents of children attending the daycare centre have been shocked to learn the brothel is in the same building. Many parents only learned about the brothel when approached by ONE News.
Locals say the brothel has being operating for months and claim a second one also used to be in the building.
Wellington City Council says because the brothel is in the business district it is not breaking any laws.