The tribute was the opening gala for the ASB Queenstown JazzFest, which brings music to the masses over five days.
JazzFest director Simon Green said in a statement yesterday he could not think of a better way to start the 32nd annual festival than with a "truly locals event, showcasing such a wide range of local talent.
"We had more than 20 different acts performing, from soloists and duos to the full Queenstown Community Choir.
"Margaret has given so much to aspiring artists and entertainment as a whole in the region, and it was a wonderful way for people to show their appreciation in the best way they know how, by performing."
The Peggy Lee Tribute Show with Erna Ferry followed by the Big Band Bonanza with Bob Sheppard, Bill Cunliffe and Rodger Fox, both played last night.
The action continues until Monday with a line-up of performances on the village green, Earnslaw Park and venues around the centre of the resort, at Remarkables Park Town Centre and in Arrowtown.
Up-and-coming performers will be giving it their all at the NZONE Skydive Youth Competition heats today in the Queenstown Memorial Hall.