The undeveloped land is part of a sprawling family-owned sheep station. It is on the shores of Diamond Lake - renowned for its trout fishing - and in the foothills of the Mt Aspiring National Park, near the start of the Routeburn Track.
Owner Jim Veint, whose parents bought the station in 1951, said about 14 films had been shot at Arcadia Station over the years, including the two The Chronicles of Narnia movies, The Lion the Witch and the Wardrobe and Prince Caspian; and Sir Peter Jackson's The Lord of the Rings and The Hobbit trilogies.
The working high country farm was the setting for Beorn's fortress in The Hobbit: The Desolation of Smaug, he said.
The film crew was on location for three months constructing the grand set and filming scenes.
"It's always quite interesting. But the editors edit a lot out in the end."
Sir Ian McKellen, who played Gandalf, described the area as "perhaps my favourite spot".
The property is an hour by road from Queenstown - or 15 minutes by private helicopter.
Owner/broker of RE/MAX Queenstown Brian McMillan said the property was uniquely zoned. Remax is pitching it as a possible resort location, wellness centre or corporate retreat.
The Queenstown area has some of the world's top resort accommodation, including Blanket Bay lodge, which was named this month among the "Top 20 International Hideaways".
"To find [46ha] of pristine lake-edge property for sale in paradise is rare," Mr McMillan said. "To find it zoned for residential and visitor accommodation is even more so.
"The scenery is outrageous. There's something almost ethereal, with the mist rolling over the beech trees and snow-capped mountains."
The entire station was listed for sale in 1997. The 46ha block was relisted in 2007 but did not sell because of the international financial crisis.
Mr Veint lives in the station's 108-year-old homestead with his partner Roz and plans to continue farming the land.
He said a rich American buyer was ready to purchase the property several years ago, but he and his son were killed in a plane crash.
Mr Veint hoped any new owner would look to improve the property.
"Less is sometimes more. You'd spoil the place if you had too much development."
Federation of Mountain Clubs president Robin McNeill said the area was a "special part of the world".
"Anything that happened we'd want to be sympathetic to existing users and the public in general."
