Two women have been arrested in relation to an alleged racist incident in Queenstown on Sunday morning.

Sergeant Steve Watt, of Queenstown, said two British nationals handed themselves in to police this morning following media attention in relation to the incident in which a cup of hot coffee was poured over a 30-year-old woman outside Fergbaker on Shotover St.

The victim challenged a woman who had been making derogatory comments about Asian tourists around 12.30am before the situation escalated.

A 23-year-old woman has been charged with assault, while a 24-year-old was charged with offensive behaviour likely to cause violence, Sgt Watt said.

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Both women were expected to appear in the Queenstown District Court on Monday.

Sgt Watt said police were grateful to the wider community for their assistance.

"I want to thank those who phoned police with information relating to these two.

"The assistance and continued support of the community is outstanding and is a constant reminder of the great area in which we all live."