However, Queenstown Lakes District Council network operations manager Michael Wardill said the problem was "not a straightforward fix".
Yesterday morning, Queenstown police reported a vehicle had failed to take the tight corner of Thompson St, near the Man St-Thompson St intersection, at 12.40am yesterday, and travelled over the footpath, down a bank and "straight through into the bushes".
Acting Sergeant Terry Wood said it appeared both occupants of the vehicle had been drinking.
Blood tests had been taken.
Acting Sgt Wood said it appeared two people had been in the car and one got out for relief on the side of the road.
"Another person has taken off in the car."
The female driver had sustained moderate injuries and charges would follow, he said.
At 8.25am on Saturday, a 32-year-old Argentinian woman crashed metres away from the same spot, after failing to negotiate the corner.
The woman escaped uninjured after her car crashed through a 30kmh speed advisory sign, breaking it off, and came to rest against a building at Deco Backpackers.
The sign had not been reinstated before the most recent incident.
Deco Backpackers owner Tim McGeorge said it was the third crash on his property in under a year. Last May, another driver had failed to negotiate the same corner and crashed into the business' boiler room, which faces Thompson St.
Mr McGeorge told the Queenstown Times he had been requesting traffic-calming measures - ideally speed humps - be installed along the narrow street for about eight years.
However, the only traffic-calming measure put in place had been the 30kmh speed advisory sign, which was knocked out of the ground as a result of Saturday morning's incident.
"There is going to be a death. Then what [is the council] going to say?
"This is ridiculous. Something has to be done."
He had seen drivers travelling from Thompson St to Man St cutting the tight corner and then losing control, or speeding through the Man St intersection to head along Thompson St.
The risk was not only to the drivers and passengers, but also to pedestrians and his staff, who used the back area of the backpackers frequently.
While there had been mention of a barrier around the corner, he likened it to the "ambulance at the bottom of the cliff".
"They [drivers] have to be physically slowed down."
When contacted by the Queenstown Times, Mr Wardill said he was unaware of yesterday morning's incident, but knew there were some issues with the section of the street.
The council had looked at options, but the nature of the road and area around it meant there was no simple solution.
A guard rail had been considered, but the proximity of Deco Backpackers' driveway had made it difficult.
Speed advisory signs acted as a warning to drivers, but "people can miss the sign".
Another option was "side friction", where plants and other objects were used to narrow a road, encouraging drivers to slow down. However, because that section of Thompson St was already narrow, it was probably not a feasible solution.
Speed bumps might also have "the reverse effect" of that intended, Mr Wardill said.
"If people hit them at speed ...It can actually make people airborne. It's not always the best solution ... You can create a hazard."
Mr Wardill said he had inspected the area on Tuesday after being informed of the weekend incident and subsequently asked council safety engineer Andrew Edgar to do a site inspection "and let us know his thoughts".
"It's to assess it and try and identify if there's a serious concern that council would hold on that intersection, and what would be the potential [remedy]."
Depending on the recommendations from Mr Edgar, the matter may go to the council for discussion.
