We review the advances made in 'blue water' physical oceanography of the seas around New Zealand since the last major review in 1985. By 1985, a basic description had been made of the circulation around New Zealand. Since then, dramatic increases in data from satellites, hydrographic cruises, surface drifters and profiling floats have improved knowledge on the locations, strengths and variability of the currents, water masses and fronts in the region. We have better estimates of the surface and deep circulation, and a better understanding of the dynamical processes driving this circulation and its variability. This review covers the open ocean, including water masses, ocean currents, tides and numerical modelling, and discusses the future of New Zealand oceanography.