The Cessna Skyhawk crashed in the rough embankment near the eighth hole of the course, about 2km from Arrowtown, about 3.15pm.
The pilot and registered owner of the plane, Ian Douglas Sloan (59), of Tauranga, died at the scene.
The passengers, a man in his 30s and woman in her 60s, were last night in a stable condition with moderate injuries in Dunedin Hospital. No further details about the survivors were available last night.
Golfers Dave Cruickshank, Greg McMeeken and Bryce Jack were playing at the course when they saw the plane struggle to maintain altitude as it flew over the distant trees of the front nine holes on the course.
"We were all watching it wide-eyed, and then Dave said 'that's not high enough'.
"Next thing, it topped a tree and there was a huge crash. It happened about two holes away from us," Mr McMeeken said.
Mr Cruickshank said he feared a "worst-case scenario" as he sped to the crash site with Mr Jack in a golf cart to check for survivors.
Confronted with the wrecked Cessna and an overwhelming smell of aviation fuel, the pair made a "split-second decision" to drag the trio from the plane.
"There was lots of fuel everywhere because of the angle which the plane was on. It was basically pouring over the engine cowl," Mr Cruickshank said.
"We had to make a split-second decision to get them out ... We didn't have much of a choice."
An aircraft refueller at Queenstown Airport, Mr Cruickshank said he was "well aware" of the dangers the spilt fuel presented to everyone.
However, he was unsure about whether moving the survivors was the right first-aid option.
"What made my mind up was the pilot didn't look like he was going to survive if we didn't move him. He wasn't breathing and was unconscious.
"To get to him, we had to get the others out first," Mr Cruickshank said.
Meanwhile, Mr McMeeken had called emergency services from the course clubrooms.
One of the passengers had almost been thrown out an open door of the aircraft. Paper, maps and plane debris littered the fuel-soaked site, Mr Cruickshank said.
All the time, the threat of the fuel igniting was in the back of his mind, he said.
"There was a risk of it going up. We just had to try and do what we could."
Detective Sergeant Brian Cameron, of Queenstown, said Mr Sloan was declared dead at the scene. The passengers were taken to Lakes District Hospital, in Queenstown, before being airlifted by the Otago Regional Rescue Helicopter to Dunedin Hospital.
One of the injured was conscious and talking and the other was conscious when they where transported by ambulance, Det Sgt Cameron said.
It was too early to say what caused the crash, he said.
The Cessna was pitched forward into the ground and its tail fuselage was broken.
It was drizzling and a moderate wind was blowing.
Police believed the aircraft was returning from Invercargill and approaching to land at a neighbouring private air strip about 150m away from the crash site.
Det Sgt Cameron praised the efforts of people on the course who helped the occupants after the crash.
CAA spokeswoman Emma Peel, of Nelson, said Queenstown police were to control the scene overnight until three CAA investigators arrived today.
The wreckage would probably be moved to a specialist facility for further examination.
Last night, Tauranga Aero Club president David Campbell said Mr Sloan was a member of the club and his death was a "tragedy".
"He was a real nice guy ... a real salt of the earth.
"It is a real tragedy for our aero club."
Mr Sloan had flown from Tauranga to Queenstown several times and was based at the resort, driving machinery at a skifield.
"He had lots of experience.
He had bought the aircraft a couple of years ago and done a huge amount of flying in it since then," Mr Campbell said.
The death has been referred to the coroner. - Additional reporting Hamish McNeilly.
