The regional edition will be held in Queenstown for the first time at the memorial hall on Saturday.
Two finalists and the people's choice winner from the regional event will go into a selection process - for which they are required to submit a DVD of original songs - with winning acts from 24 other regions.
In August, eight acts will be named to go to the national final, at Founders Theatre in Hamilton on September 11.
National prizes include a $10,000 recording and music video grant, music equipment valued at $10,000, recording time at a studio and radio promotional support for a single.
Performers will also vie for the Mainz Scholarship for outstanding musicianship, the Apra Lyric Award, the Lowdown Best Song Award and the Smokefree Women's Musicianship Award.
Smokefreerockquest director Glenn Common said in a statement the event gave school bands a realistic taste of live performance in a formula that had been replicated in 24 other regional centres around New Zealand over winter.
"This year I've noticed that we are getting representation from almost all schools in many areas, and the teachers are coming along to support their students and often to assess their performance for NCEA.
"There's no doubt that entering this event enhances a band's performance - we notice significant improvement with bands that have entered for two or more years, and it's often bands with several years of Smokefreerockquest experience that make it to the national final."
The regional final will alternate between Queenstown and Wanaka every year.