Firefighters were first called to the area after reports of a small fire about 5pm yesterday, but arrived to find it was already out.
They were then called back soon after, when a second fire was spotted in the same area about 5.30pm.
Firefighters from Queenstown and Arrowtown stations tackled the fire, but called in extra water tankers and a helicopter armed with a monsoon bucket after it began spreading ''a little bit quickly'', a Fire and Emergency New Zealand spokesman said.
The firefighters then ''managed to knock it very, very quickly'' and it was out by 7pm, which was ''pretty good going'', he said.
It was not clear how big the fire was last night, but it was believed to have been caused by an electricity transformer that ''blew'' in the area, he said.
Several Queenstown residents, posting on social media, said they were temporarily without power.
An Aurora Energy spokesman could not say how many people were affected, but confirmed a fault on overhead equipment had started a ''pole-top fire''.
''For safety, the section was isolated to enable the fire service to extinguish the fire.''
Power was restored once the fire was out.
