In September, Jeanette May McNee, 44, was found guilty of using offensive language against Malaysian-born taxi driver Ganesh Paramanathan.
She had denied saying to him: ''F... off to India. You came here and get all of the Kiwi jobs; eat your f... curry and f... off to India. This is a Kiwi job."
Judge Tony Couch granted McNee a discharge without conviction, saying the consequences of a conviction would be out of all proportion to the gravity of the offence.
But New Zealand Police began an "employment process" following the case.
In a statement today, police said McNee had resigned.
Southern District Commander Superintendent Andrew Coster said: "Police officers must maintain the highest standards of behaviour in both their on and off-duty conduct.
"We work for an organisation that prides itself on maintaining high levels of professionalism and strong community relationships.
"Every day our police staff are striving to do their best for their communities and we will continue to build partnerships with groups more vulnerable to crime and safety issues, particularly minority groups.
"We acknowledge the courage of the taxi driver concerned, Mr Ganesh Paramanathan, in bringing this matter to our attention.
"We hope that the professional manner in which this case has been managed as gone some way to restoring his trust and confidence in police."
Police spokeswoman Vivien Pullar was unable to confirm whether any disciplinary action against Ms McNee had taken place following last year's incident.
She said she was also unable to comment on whether Ms McNee's resignation was the result of any such action.
Queenstown Taxis managing director Grant Scannell said he did not wish to make any comment following the news of Ms McNee's resignation.
"It's been dealt with in the courts and that is where we are at," he said.
- Paul Taylor
