Speaking to the Queenstown Times from Auckland yesterday, Gibbston Community Association chairwoman Susan Stevens said she was "still fizzing" over the honour, which was completely unexpected.
The association was nominated alongside the Aotea Support Group, of Great Barrier Island, and Canterbury Charity Hospital in Christchurch for the award, held in conjunction with the 2011 New Zealander of the Year Awards.
"The other two nominees were so brilliant," she said.
"I had a chance to meet them at the cocktail function [before the gala awards dinner] - they're all amazing.
"It was incredible to even be considered alongside them."
However, when the envelope was opened it was the Gibbston Community Association's outstanding community development achievements which received the nod from the judges.
Most recently, the association opened the $1.4 million Gibbston River Trail, which stretches 8.5km alongside the Kawarau River and took six years to complete.
It is expected to attract 20,000 people annually.
The news was well received by the eight Gibbston residents who had travelled to Auckland to support Mrs Stevens.
Included were former association chairman John Lane and wife Helen, Mike and Irene Rosser - the first donors for the Gibbston River Trail - Mike and Rosie Dunphy, of Coalpit Winery, "who have donated to every project in Gibbston" and Mrs Stevens' husband, Terry.
"Without his support I wouldn't be able to volunteer full-time.
"We were shocked [but] we were pretty noisy when we won. We just so didn't expect it.
"It was so funny. We were just all fizzing and we kept repeating ourselves all night long because we couldn't believe it.
"It's just so amazing for such a tiny community that had five families left [in the 1970s] to have come back to this stage is just so remarkable."
There were now 89 households, but only between 40 and 45 of those were permanent residents, she said.
"When you're a tiny community like that, it's a lot of work . It's a lot to ask people to keep coming out for working bees and contribute financially.
"There are a small number of wineries who are continually being asked for help, so I'm just really proud that all that hard work has paid off."
Text messages were sent out to Gibbston residents when Mrs Stevens caught her breath and yesterday she said the reaction had been unanimous.
"Everyone's saying it's absolutely fantastic and they feel like we deserved it."
Mrs Stevens said she would discuss with the committee what to do with the $5000 prize money, but hoped it would go into educational panels for the trail, which was officially opened in December.
However, she hoped the "beautiful" trophy would be allowed to remain on her mantelpiece, motivating her to start another fundraising push, this time for interpretive panels and markers for the trail.