Spokesman Richie Anderson said the tournament had been running for 12 years.
Initially, it was the Queenstown Sevens, which was a precursor to the Pub Charity New Zealand Sevens.
However, five years ago the tournament changed from seven aside to 10-a-side, allowing the forward pack to have a pre-season hit out.
"If you look at a game of sevens you see a lot of fast men ... They're all roughly the same build," Anderson said.
"In tens you still need your front row ... big props and hookers and locks.
"There are five to a scrum so it gets those guys back involved ahead of the rugby season, which kicks off soon.
"Sevens doesn't give the opportunity for the front row [to be involved]."
Arrowtown, Wakatipu, Cromwell, Matakanui and Clutha Valley will go up against Southland sides Riversdale, Woodlands, Eastern Southland Barbarians, from Gore, and 2011 champion Blues.
A Canterbury team will also make the trip to the Lakes district this year.
Anderson said the side had been entered for the 2011 tournament, but withdrew after the February 22 earthquake.
The teams had been split into four pools of three teams.
Round-robin competition will start at 10am tomorrow.
The final will be played just after 6pm.
Mr Anderson said there was a possibility the tournament would shift from its traditional home of Jack Reid Park to the Queenstown Events Centre for the 2013 competition, with bigger prize money expected to draw more teams.
"We've been speaking to a few people and next year we really want to make it a big event.
"Obviously, with promotion you get a few more teams being involved. The idea would be to have 24 teams and the only way to make them come is to give [more] prize money.
"There is a cash prize for the winning team of the tens, but with sponsorship and bigger prize money comes more competition in terms of teams," he said.
Refreshments will be available all day and the winner of a 100m dash for cash event will win $100.
A collection for the Relay for Life event in Cromwell would also be held, Mr Anderson said.