While winter-reliant tourism businesses will be rubbing their hands with glee, the snow has caused widespread disruption.
Schools are closed, contractors are battling power blackouts and flights to Queenstown have been cancelled or delayed.
About 10cm fell in central Queenstown overnight, with 25cm in the hill suburbs such as Fernhill and Sunshine Bay.
Queenstown Airport's rescue fire team were clearing snow from 4am. A flight from Christchurch was diverted to Invercargill and its return leg has been cancelled.
Other flights were delayed. The first arrival to touch down was a Jetstar plane from Auckland, which landed late morning.
Delta Utility spokesman Gary Johnson says power has been restored to Frankton, Arrowtown, Lake Hayes Estate and Ladies Mile to Lake Hayes Road.
He says faults should be reported to an electricity retailer's faults number.
"Severe weather conditions continue and consumers should be prepared in the event of further power outages."
The power blackouts hit the Queenstown Events Centre's boiler that heats its swimming pool.
Queenstown's council said this morning "pool temperatures are colder than usual because our boiler was affected by power outages last night. There are currently no hot showers available at the pool."
Alpine Aqualand swimming lessons were canned this morning.
Bus operator Connectabus' service has resumed after being on hold this morning.
NZ Transport Agency temporarily closed State Highway 6 between Frankton and Cromwell through the Kawarau Gorge this morning, but it has re-opened.
At 10.15am, Queenstown's council said chains were to be carried in: Fernhill, Queenstown Hill, Dalefield and Malaghans, Arthurs Point, Arrowtown, Kelvin Heights and Glenorchy Road.
The Crown Range Road to Wanaka is closed.
Three cars were spotted in a ditch on the steepest parts of Fernhill Rd at about 7.30am.
The council's libraries opened at 10am and long-term plan hearings in the Gorge Rd council chambers started late.
