Emergency services at the scene of the crash on the Clutha River near Wanaka. Photo / James Allan
Spokesman Paul Mullan said the death had left the community in "total shock".
"We tragically lost one of our 'family' in an accident today, which has left everyone in total shock."
The accident had occurred during the third of four racing legs on a stretch of the Clutha River, above the Luggate Bridge. No other race boats were involved.
"Our sincere condolences go to the families of those involved," Mullan said.
Police confirmed another person was airlifted to hospital with moderate to serious injuries following the incident.
"The Swift Water Rescue team have been called out to assist with the scene examination and Maritime New Zealand are also on their way," police said.
"The area where the crash has occurred has been difficult to access, and emergency services will take some time at the scene to establish the cause."
Photo / NZ Herald
The Transport Accident Investigation Commission said yesterday it was aware of the incident but under the "circumstances reports so far", it had not opened an inquiry.
Maritime New Zealand has also been notified of the incident.
Police and emergency services rushed to the Hawea Flat area after reports of the crash. Photo / James Allan
Sunday's tragedy comes after a jet boat crashed on a remote part of Queenstown's Shotover River on Saturday.
Ten people were on board the Skippers Canyon jet boat when it crashed into rocks, injuring nine.