He was presented with the award at a ceremony attended by all 2,100 pupils at the boys' school which celebrates its centenary this year. He was invited to attend a school assembly along with his wife, Trudi, daughter Gabi and son Bryn who is a pupil at Hamilton Boys' High.
The coach was presented with a plaque and his photograph will now hang permanently on the wall of a room at the school set aside to celebrate its most famous ex pupils.
Hamilton Boys' High School is famous around New Zealand and beyond for its academic and sporting standards and now boasts a waiting list of potential pupils anxious to attend.
In the programme for the ceremony it was revealed that in 1982 Gatland was named Sportsman of the Year at the school. While playing for the school's rugby first XV the local newspaper, The Hamiltonian, described him as: "Easily one of the most skilful forwards in the country."
It described how he went on play his first of 17 games for the All Blacks in 1988 and represented Waikato 140 times.
After his playing career he coached at Connacht and then the Ireland international team before coaching London Wasps to success in three premiership championships and victory in the Heineken Cup.
He returned to New Zealand and coached Waikato to victory in the Air Nz Cup before becoming Technical Advisor for the Chiefs and then returning to the UK as Head Coach of Wales.
The Hamilton Boys High School Headteacher, Susan Hassall, said: "We have honoured Warren for his contribution to the sporting environment around the world and his achievements as a role model for our pupils of today.
"He has succeeded as a sportsman and then gone on to give back an enormous amount to sport as a coach and that's what makes him special. I taught him when he was here as a pupil and I know he will always have a special place in the beating heart of this school.
"He was chosen for this honour by the Old Boys Association and the school because he thoroughly deserves this recognition."
Gatland said: "To be recognised within the community I come from is a huge honour for me. It's a great feeling to be back here and I was delighted to have been inducted into the Hall of Fame at the school where my son is still a pupil.
"I always wanted to follow my dream and pursue a career which kept me on a sports field and I have been lucky enough to achieve that ambition."