Millbrook Resort manager Ross McLean confirmed this morning that a "Government conference" was taking place at the venue but denied to provide any specific details.
"Millbrook is who we are because we do not disclose any information about any guests whether VIPs or just any couple," McLean said.
McLean said important visitors typically enjoyed the fact that the resort was quite a "relaxed area", unlike the "hustle and bustle of Queenstown".
The Herald believes the conference will take place for a week starting on Monday.
Prime Minister Bill English's office confirmed in the week that there will be more than one VIP in Arrowtown this weekend.
A number of police officers roamed the resort grounds on Saturday morning, while security stood at a temporarily blocked internal road that runs down the side of the reception area.
Marked and undercover police cars were spotted at various locations around the property.
Locals reported seeing snipers and bodyguards in Arrowtown earlier in the week.
A spokeswoman for the Department of Internal Affairs told the Herald that they were not involved in the visit, which was just as much of a mystery to them as the public.
She said if the highly secretive visit involved a head of state or ex-head of state, the department would typically be involved with organising vehicles and security.
It is not known which government ministers are attending the Queenstown conference, however Minister for the Government Communications and Security Bureau (GCSB) and Security Intelligence Service (SIS) Chris Finlayson is expected to make an appearance.