The Department of Conservation and the Queenstown fire service are satisfied a blaze which ripped through conservation land between Queenstown and Glenorchy is under control.
More than 100 houses were evacuated in the early hours of this morning as a precaution.
The wind has now dropped slightly and rain is
forecast for later today.
Police say they are investigating the cause of the blaze but initial indications point to fireworks.
The power is back on in Sunshine Bay and Fernhill after the main transmission line was shut down.
And residents of the Alpine Retreat Village have been allowed to return after being evacuated early this morning.
Emergency services were called in the early hours of this morning and a helicopter equipped with night vision joined those battling the fire from the ground.
Queenstown police Senior Sergeant John Fookes said since daylight another seven helicopters with monsoon buckets had joined in, and were working over 300 to 400 hectares of rugged landscape.
Four ground units were also battling the fire, which is about 6km southwest of Queenstown and forced the closure of the road to Glenorchy.
About 105 evacuees congregated at the Queenstown Event Centre earlier this morning before some moved on to stay with relatives.
Mr Fookes said residents, some with homes worth well over $1 million, could only sit and wait as the fire burned.
He said it was still unclear what may have caused the fire. But he told Newstalk ZB there have been some initial reports of fireworks and police would like to speak to anyone with information.
- NZPA, NEWSTALK ZB
