Local singers and musicians performed Christmas carols and other songs to a crowd of about 150 people during the ''Lighting of the Tree'' ceremony.
The event - organised by Wanaka's self-described ''Christmas Fairy'', Jen Anderson - culminated in Sir Tim pushing the button to activate the hundreds of twinkling fairy lights adorning the tree on the lawn of the Wanaka Hotel.
Ms Anderson said more than $20,000 had been raised by the community to cover the cost of the tree and the show.
The money had come from trusts, the Queenstown Lakes District Council and local businesses, residents and community groups.
Ms Anderson has also established the Upper Clutha Community Christmas Trust, which is working with the Upper Clutha Hospice Trust to create the town's first Santa's Grotto.
The grotto will be open from December 12 to 21 in the old Salvation Army store, opposite Cinema Paradiso in Brownston St.
