A man arrested in connection with the hate material plastered on Queenstown Islamic Centre on Tuesday has been charged with possession of a knife.
The 18-year-old male appeared in court after being arrested in Queenstown Gardens some time on the morning of December 24.
He was granted bail to a Queenstown address.
Southern District Commander Superintendent Paul Basham expected further charges would be laid. He thanked residents for information.
"We know incidents like this are upsetting for our community and we'd like to thank Queenstown residents for the information they have provided to assist our inquiries."
He asked for anybody with further information to contact Queenstown Police on 105.
The arrest came after six anti-Islamic posters were found on the Masjid in the Gorge Rd retail centre, less than two weeks after it first opened.
More posters were found in the surrounding area and similar posters have been spotted around the resort in recent weeks.
