Four individuals were captured on CCTV scrambling up poles in central Queenstown to remove about 30 flags in the days before the Winter Pride festival.
One appears to have a pride flag draped around his shoulders.
Inspector Paula Enoka, Otago lakes central area commander, said police wanted to speak to the people pictured, or anyone who recognises them.
"At this time we are unaware of the motivation behind this theft, and fully support this great festival that means so much to our city."
Anyone with information is asked to contact police on 105 or online at police.govt.nz/use-105 using ‘Update Report’.
'Deeply concerning incident'
The vandalism has been labelled a "deeply concerning incident" by festival organsiers.
Winter Pride co-director Sam Coulthard said there was CCTV footage taken at 3am last Friday showing four people climbing up the flagpoles.
The street flags, worth $12,000, were installed around the Queenstown Bay and Village Green area as part of the Winter Pride event, which began yesterday.
"This act of vandalism is not just an attack on property — it sends a troubling message to our community and raises concerns about small-town homophobia," Mr Coulthard said.
The identities of the vandals were not yet known, but it was important for the community to know "we are here and we support you".
"In a town known for its beauty and welcoming spirit, it’s disheartening to see acts like this that attempt to undermine efforts to create safe and inclusive spaces."
A Givealittle page has been launched to fund replacements for the flags, which cost $400 each to produce.
"We’ve noticed a lot of hate coming from a lot of people, which shows this festival is still very important.
Sergeant Steve Watt said police were investigating.
"We can’t know the motive for removing these flags until we have identified those responsible.
Police knew how frustrating it was for the organisers of this "vibrant festival". which injected a "real boost" to the town.
Queenstown Lakes District Mayor Glyn Lewers said whether it was a "drunken prank" or something more deliberate and targeted, it had caused a lot of hurt and anger.
"I’m enormously proud to be mayor of this district, and I’m equally proud that we’re hosting Winter Pride again this year.
"Whilst I respect anyone’s right not to engage in this celebration if they choose, I am firmly opposed to anyone who thinks they have the right to take choice away from others."