Wanaka ward councillor Quentin Smith said while the numbers were on a par with previous years, the lakefront off Ardmore St had been where large numbers of youth had congregated for years.
"It was probably confronting to have a couple of thousand young people out at the waterfront."
While this has been a perennial problem in Wanaka at New Year, it comes after police issued a warning to parents to keep tabs on their children following a spate of alcohol-fuelled incidents in the holiday hot spot in the lead-up to the new year.
Cr Smith said the large number of youths congregating was particularly concerning for young women and the potential for sexual assaults was high.
He was also aware of some vandalism incidents in the town over the period and said he believed some youth had not got the memo regarding events and fireworks.
The Queenstown Lakes District Council cancelled fireworks and music performances due to the complexities of planning events under the traffic light system.
"People possibly expected them [fireworks and entertainment]."
However, police in the region were generally pleased with the behaviour of party-goers on New Year’s Eve.
A police spokeswoman said there were a handful of arrests but the vast majority of people drank responsibly and got home safely.
In Wanaka township, two people were arrested for disorder and two for assault.
At Rhythm & Alps, two were arrested for disorder and one for assault.
There were also several people processed for drink-driving in Wanaka and Hawea.
