Funded by an anonymous donor, the Corten and stainless steel sculpture is the third artwork to be installed beside the walkway/cycleway in the past 14 months, turning the track into somewhat of an art trail, too.
First came three corrugated iron goats, made by Auckland artist Jeff Thomson, and last month a schist and steel ''static kinetic sculpture'' by Arrowtown artist Shane Woolridge appeared by the walkway.
All three works were funded by anonymous benefactors; the costs are unknown.
Queenstown Trails Trust chairman Tony McQuilkin said the artworks were making the peninsula walkway a special part of the network.
The favourable public reaction created its own momentum, and he hoped to see more appear in the coming years.
Mr Hill said his sculpture depicted ''a tree spirit and a water spirit - like a taniwha''.
Unlike his other works, which were installed in wide open spaces, he liked the way it blended with the colours and textures of the surrounding trees.
''It almost catches you by surprise as you come across it.''
Queenstown Lakes Mayor Vanessa van Uden said the donor was not seeking public acknowledgement, but was doing it ''for their own enjoyment, and creating something for this community to appreciate''.
