The steps were agreed by the WRU board last week and the new National Amateur XV could play its first fixture at the end of the 2005/2006 season.
The new, five team regional tournament - the Scarlets' region will be split into North and South XVs - will be the stepping stone to the Wales Amateur side with home and away fixtures being played on Tuesday nights during the November international and Six Nations periods.
The 20 teams who currently play in the two north Wales divisions in the National League will be joined by Llangefni and Ruthin in the 2006/2007 campaign when all teams in that region return to play in their own league and cup competitions. Llangefni won Division 4 North last season and then won a play-off match that enabled them to play in Division 3 West this season, while Ruthin will play in Division 3 South/East.
The WRU board's decision means that as from the 2006/2007 season no teams from north Wales will be able to play in the WRU National League system outside their own region.
"Developing our game throughout the various communities of Wales is vital to Welsh rugby if we are to continue to improve at all levels," said WRU chief executive Steve Lewis.
"The decisions taken by the WRU Board last week are the first steps in enhancing and inspiring the game at local level to work on the development of their players and point them to the top.
"The creation of a Wales Amateur XV, with a new regional tournament beneath it, will give a new group of players the chance to play for their country and don the Welsh jersey. We believe that will give those young, aspirational players up and down the National League structure the chance to showcase their talents and push for contracts with Premiership and Regional teams.
"France already have an amateur team and the RFU have an England Counties XV. We have been in discussion with FIRA-AER about this development and they have 38 international teams across Europe who are all looking for new opposition.
"The intention is to give those players between 20-25 the chance to push their claims and it will be great to have the bulk of the clubs in Wales vying to produce international players once again."
The WRU are set to back these new moves with substantial financial backing and will be seeking coaches and selectors to boost the new regional tournament.
"I'm sure the two teams from north Wales who are currently playing outside their region will be disappointed at having to return to play with their neighbours from 2006, but this step has been taken after looking long and hard at the effect of travelling twice a month to south Wales by teams from the north," added Lewis.
"The nearest fixture for Llangefni this season will be 94 miles away in Aberystwyth, while Ruthin face a round trip of 200 miles or more for each away fixture in Division South/East. We are asking amateur players at the heart of the community game to give up at least 13 Saturdays each season in order to get their enjoyment from the game.
"That takes a huge toll on them, their clubs and the quality of their performances. What we are offering them from 2006 are reduced travelling, old rivalries, the chance to shine in the WRU's Konica Minolta Cup and a new route to improve via the regional tournament and the Wales Amateur XV."
Wales and Ospreys back row James King, who came through the North Wales age grade system, nominated North Wales Regional Community Rugby Manager Marc Roberts, in the WRU's 'Diolch' initiative where squad players thanked those who played a part in their rise to the top.
Beating Merthyr has boosted Carmarthen Quins hopes of reaching a top eight spot in the Principality Premiership. Quins captain Haydn Pugh is delighted with his team's progress and is determined that everyone from the Under 6s through to the senior team, enjoys the ride.
When the Wales squad were asked to nominate individuals who played a big part in their early playing days, Wales and Dragons full back and wing Hallam Amos thought of his former Monmouth School rugby coach John Bevan.
Sam Cross and Luke Treharne have been named as co-captains of the Wales Sevens side as head coach Gareth Williams names his 12-man squad to play in the first leg of the HSBC World Series in Dubai next weekend.
Bedwas head coach Steve Law and players Nicky Griffiths and Alun Rees extol the virtues of the close knit club as they prepare to host third place RGC 1404 - who are one place head of them on the Principality Premiership points table - on Saturday.
Many of the Wales squad have said Diolch (thank you) to someone who played an important part in their early playing days by nominating them to be invited to the Wales v South Africa match. One person, Gowerton Comprehensive geography teacher Mr Dean Mason was nominated by two of his former pupils, Dan Biggar and Sam Davies.
The second WRU disability rugby pilot has been delivered, this time in Caerphilly schools, culminating in a festival at the Caerphilly Centre of Sporting Excellence, Ystrad Mynach tomorrow. Plans are in place to set up a Disability Rugby Club in Newbridge to provide long-term playing opportunities.
WRU TV: Hear from inside the Wales camp as Neil Jenkins discusses this weekend's clash with South Africa and how the squad are looking to put in a strong performance to round of the 2016 Under Armour Series