Famed children's author and former Bay of Plenty woman Margaret Mahy passed away following a brief illness in Christchurch on Monday.

She was 76-years-old.

Margaret Mahy and the cover design of her book, 'The Word Witch'.

Born in Whakatane, Margaret held the country's highest royal honours - the membership of the Order of New Zealand.

Margaret wrote 10 picture books, 40 novels and 20 collections of short stories in her lifetime, all of which were translated into 15 different languages.

She was born in Whakatane in 1936 and wrote her first story, Harry Is Bad, when she was seven-years-old.

Her first published book - A Lion in the Meadow - was published in 1969, it was also the book which launched her international career when it was discovered by American editor Sarah Chockla Gross.

'It was one of those romantic things that happen,” Margaret once said.

Margaret's daughter Penny says the death of her mother is a 'double whammy”, after her uncle died unexpectedly on Saturday.

New Zealand Governor-General, Lt Gen The Rt Hon Sir Jerry Mateparae expressed his condolences to the Mahy family.

'It was with great sadness that I learned of the passing of Margaret Mahy – one of New Zealand's most recognised and loved authors.

'Margaret was a member of Order of New Zealand, an honour which recognised her outstanding service to the Crown and to the people of New Zealand.”

He says during her lifetime, she wrote many popular books which inspired and encouraged both children and young adults to read, through her quirky imagination and brilliant storytelling.

'Margaret's contribution to our country is legendary. Her stories have captured imaginations both at home, and abroad, and will continue to do just that for many, many years to come.

'At this sad time, on behalf of my wife Janine and my family, I extend my deepest sympathies to Margaret's family.

'A truly great New Zealander has taken the long sleep but her legacy will be enduring.”