The crash, which involved a passenger van carrying eight people and a car with two occupants, occurred 25km north of Tarras about 10am.
A police spokesperson confirmed a 30-year-old man was taken into custody at the scene and was due to appear in the Alexandra District Court on September 19 on a charge of driving dangerously causing injury.
Speaking at the crash site, Sergeant Darren Kidd, of Alexandra, said that the crash appeared to have been caused
by "an overtaking manoeuvre that’s gone wrong".
"Thankfully, both parties have reduced their speeds. There’s no serious injury."
The occupants of both vehicles were overseas tourists, Sgt Kidd said.
A Hato Hone St John spokesperson said two ambulances and one first-response unit were called to the scene and three patients were taken by ambulance to Dunstan Hospital in a moderate condition.
Emergency crews had a heavy presence at the crash site, including several fire appliances and police vehicles from Alexandra, Cromwell and Wānaka.
A stop-go system was put in place to allow traffic to pass in both directions, but the entire crash site had been cleared by noon.
Although dark clouds had been hanging over the valley, it had not been raining at the time of the crash, Sgt Kidd said.
"It’s just a good reminder," he said.
"Be aware of your surroundings when you’re driving," Sgt Kidd said.
