Abstract. We analyse deformation bands related to both horizontal contraction and horizontal extension in Miocene turbidites of the Whakataki Formation south of Castlepoint, Wairarapa, North Island, New Zealand. In the Whakataki Formation, four sets of cataclastic deformation bands are identified: (1) normal-sense Compactional Shear Bands (CSBs); (2) normal-sense Shear-Enhanced Compaction Bands (SECBs); (3) reverse-sense CSBs; and (4) reverse-sense SECBs. During extension, CSBs form most frequently with rare SECBs. Extensional CSBs are often, but not exclusively, associated with normal faults. During contraction, distributed SECBs are observed most commonly, sometimes clustering around small reverse faults and thrusts. Contractional CSBs are primarily found in the damage zones of reverse faults. The quantitative spacing analysis shows that most outcrops are characterised by mixed spatial distributions of deformation bands, interpreted as a consequence of overprint due to progressive deformation or distinct multiple generations of deformation bands from different deformation phases. Since many deformation bands are parallel to adjacent juvenile normal- and reverse-faults, bands are likely precursors to faults. With progressive deformation, the linkage of distributed deformation bands across sedimentary beds occurs to form through-going faults. During this process, bands associated with the wall-, tip-, and interaction damage zones overprint earlier distributions resulting in complex spatial patterns. Regularly spaced bands are pervasively distributed when far away from faults. Microstructural analysis shows that all deformation bands form by inelastic pore collapse and grain crushing with an absolute reduction in porosity relative to the host rock between 5 and 14 %. Hence, deformation bands likely act as fluid flow barriers. Faults and their associated damage zones exhibit a spacing of order ten metres on the scale of 10 km and are more commonly observed in areas characterised by higher mudstone to sandstone ratios. As a result, extensive clay smear is common in these faults, enhancing the sealing capacity of faults. Therefore, the formation of deformation bands and faults leads to progressive flow compartmentalisation from the scale of ten metres down to about ten centimetres, the typical spacing of distributed deformation bands.