Two rural settlements were evacuated due to the fire, on the road to Glenorchy about 5km from Queenstown, which began about 6am and covered over 500 square metres.
The fire is now under control, and all fire crews and the six helicopters called on to fight the blaze have been stood down.
The efforts of local fire crews and helicopters have been aided by the rain, which is expected to continue throughout the afternoon.
A team will remain on site to continue monitoring the fire site for any flare ups or hot spots.
People from Wilsons Bay and Alpine Retreat had been evacuated due to the fire.
Doc Wakatipu community relations programme manager John Roberts told the Otago Daily Times at the scene this morning it was thought the fire started due to electricity power lines however, this was yet to be confirmed.
