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Director Bryan Aitken said he was impressed by the numbers and abilities of those in the ladies section he saw hit the floor dancing with heels.
"I can see a lot have been working hard since back in May when I first saw them.
"People have started working hard in the gym and hard at their dancing."
Mr Aitken said he was looking for the "triple threat" of voice, acting and dance in those who would make the show.
"I want to see different people in the community as well.
"In the next 10 weeks these people can go away and work on what they have learned today, which will give them a greater audition."
Auditions will be held in March. A maximum of 20 women would be cast and fewer men. Mr Aitken said it would be hard to narrow down as more than 50 women had turned up for the pre-audition on Saturday.
Chicago will be the 38th production by Showbiz Queenstown. Mr Aitken as director will be carrying on from his success with the Sound of Music this year.
He will be joined by music director Emma Wilson and choreographer Anna Stuart, both of Queenstown.
Mr Aitken said the choreography for Chicago would be based on the work by the show's co-creator and original choreographer, Bob Fosse, and the rights for the original 1975 version had been purchased.
"They'll have feathered head gear, feathered bottoms; they'll have it all."
Songs will include All That Jazz, Cell Block Tango, Mr Cellophane and Razzle Dazzle.
The Academy Award-winning film version in 2002 starred Renee Zellweger, Catherine Zeta-Jones, Richard Gere, John C. Reilly and Queen Latifah.