Forbes received the $3000 first prize for her watercolour, Summer Evening, Waipara, at the awards ceremony which was held in the Art Station last night.
"The artist really captured the colour and light at a specific time of the day and a specific time of the year," judge and Dunedin Public Art Gallery conservator Jenny Sherman said.
"I felt she had complete control ... and watercolour is a very difficult medium to work with."
The annual art competition drew 177 entries in a variety of media from throughout the South Island.
"I was very impressed with the range of works and media," Ms Sherman said.
"It makes it difficult to judge, because you're not really comparing apples with apples.
"I had to go with my gut feeling."
More than 100 people attended the awards ceremony.
Results were: First ($3000), Claire Forbes, of Timaru, Summer Evening, Waipara; second ($2000), Jan Ingram, of Dunedin, Summer Breeze; third ($1000), Norman Hunter, of Dunedin, Approaching Storm - Catlins; merit ($500) Paul Lindsay, of Invercargill, Full Circle and Brenda Nyhof, of Mosgiel, Watcher; Edinburgh Realty Award ($500), Andrew Cook, of Dunedin, Ship at Sunset.
A $500 people's choice award will be chosen by popular vote and announced at the end of the exhibition.
The exhibition is open from 10am to 4pm daily until September 2.