Proceeds from the fair will be put towards a feasibility study for a bike track between the two settlements - a long-talked-about idea, which is steadily gaining momentum.
About $5000 has already been raised towards the project.
The Cardrona Residents and Ratepayers Association cycleway subcommittee is negotiating access to farmland for the cycle track at present with landowners and the Queenstown Lakes District Council.
The majority of landowners had already given their consent for the track to cross their land, subcommittee members Kathy Brooke-Lynne and Mary Lee said.
The subcommittee was also investigating the possibility of building the cycleway in conjunction with a $2 million QLDC proposal to pipe Cardrona's wastewater to the Project Pure treatment station near Wanaka.
''We're trying to work with the local landowners to see if we can achieve both at the same time. Both would be very beneficial to Cardrona,'' Ms Brooke-Lynne said.
The cycleway would attract more people to Cardrona and create commercial opportunities, she believed.
''Hopefully, it will generate new interest in the area ... There's always so many cars through ... It's just they get here and what's there to do?''
Ms Brooke-Lynne's company, Brooklynne Holdings Ltd, finished developing a subdivision in Cardrona's rural visitor zone last year. Consent is in place for commercial and retail development and residential and visitor accommodation within the subdivision, between Cardrona Valley Rd and the Cardrona River.
She said things were already looking up for the village after recent improvements to the Crown Range Road, new ownership of the Cardrona Hotel, a new cafe opening, streetscaping provided by the council and, in particular, Queenstown-based Real Journeys' purchase of Cardrona Alpine Resort, bringing the skifield back into local ownership.
''There's all these sort of positives that make it time to start looking at what next.''
Another benefit of providing a designated pathway for cyclists was getting them off the busy Cardrona Valley Rd, Mrs Lee said.
The Cardrona Vintage Fair is on at the Cardrona Hotel tomorrow from noon and will feature markets, pony rides, live music and the return of fair favourites, including Cardrona merino lamb and rabbit stew.
