Mr Allison was from the United Kingdom and had lived in Wanaka since February.
The keen rock climber had fallen in love with the town.
But on Saturday morning, the 26-year-old died after falling 155m to the base of Chinaman's Bluff, in the Dart River Valley, north of Glenorchy.
Police said Mr Allison was an experienced climber, who had previously crossed the bluff.
His companion, James Briscall (37), also an experienced Wanaka climber, was rescued unharmed.
A search and rescue operation began after police were alerted just before midnight on Friday that the climbers were overdue.
Calling out during the night had failed to locate them, and Mr Allison was found by ground searchers in thick scrub at 8.25am.
Mr Briscall was airlifted from a small ledge, where he had spent the night, about 200m from the base of the cliff.
Police said it appeared that Mr Allison fell while attempting to clear an entangled rope while making his way down the cliff after completing the climb.
Mr Briscall extended his sympathy to Mr Allison's family and friends.
"Matt and I had experienced a fantastic climb and Matt had expressed how privileged he felt to bear witness to the amazing scenery around us."
Police have completed their initial investigation and referred the matter to the coroner.
Mr Allison, who also enjoyed music and drama, belonged to Wastebusters' "GetReal" campaign team, which uses art, music, poetry, skits and street performance to spread environmental messages.
The GetReal team occasionally performs in Wanaka and has taken to the streets and parks of other New Zealand towns and cities.
In May, Mr Allison was with the team which performed at Parliament in Wellington, before Environment Minister Nick Smith, and delivered submissions on the Waste Minimisation Act.Mr Allison was also involved in campaigns to reduce the use of plastic bags.
Wastebusters general manager Sue Coutts yesterday said Mr Allison was "a dynamic and enthusiastic person, with a great sense of fun".
"He was very actively involved in community activities of all sorts and made many friends during his time in Wanaka.
"He loved living here and made the most of the recreational opportunities.
"We are all very sad to hear that he died in a fall while out climbing this weekend. We will miss him a lot."
