Queenstown police responded to reports of a brawl on the Village Green on Saturday evening.
Police were contacted by a member of the public who said about 15 drunk people were fighting.
A police spokeswoman confirmed it was called at 7.30pm.
"A report of 15 plus people fighting outside KFC. We attended, the group was intoxicated so we tried to de-escalate things."
Officers stayed at the scene for about 30 minutes and while no punch-ups were reported, the scenario was described as "heated."
Police defused the situation and remained on site until tempers calmed. This incident follows "Crate Day" earlier this month, when hundreds of people gathered on the Village Green to celebrate the start of summer.
Extra police were drafted in to police the impromptu party and the clean-up raised questions around drinking in public and imposing more alcohol restrictions.
Alcohol bans will be in place in certain areas throughout the district during the festive period.
