Police were called to La Maison House of Pleasure, Queens Gardens, at 2.25am on Saturday, following reports of an altercation.
A 23-year-old unemployed Dunedin woman visited the brothel with a female associate, wanting to go out drinking with one of the workers.
When the duty manager refused entry to the pair outside the brothel, the woman is alleged to have "punched her with a knife", Senior Sergeant Brian Benn, of Dunedin, said.
The knife, which had an extendable blade of 10cm, caused a wound to the duty manager's left eyebrow.
The wound was minor and did not require admission to hospital, he said.
The alleged assailant is known to police and has been charged with wounding with intent.
The woman appeared in the Dunedin District Court on Saturday and was remanded in custody to appear again this week.
