Prevalence of self-reported racial discrimination in New Zealanders of Mäori (n = 4,101) and European (n = 6,269) descent was assessed in this major study. The data analysed were from five questions relating to treatment by health professionals and collected from the 2002/03 New Zealand Health Survey. Experience of self-reported racial discrimination was more commonly reported by Mäori. Discrimination occurring in three or more settings was almost 10-fold greater for Mäori (4.5%) versus Europeans (0.5%). Odds ratios comparing Mäori and European New Zealanders and relating to various health outcomes were reduced following adjustment for discrimination and deprivation. These included; poor or fair self-rated health OR 1.67 reduced to 1.18, low physical functioning OR 1.70 reduced to 1.21, low mental health OR 1.30 reduced to 1.02, and cardiovascular disease OR 1.46 reduced to 1.11 . The authors concluded that interpersonal and institutional racism contributes to health inequalities between Mäori and European New Zealanders, and that future interventions and policies should address the health effects of racism.