A Fire and Emergency New Zealand (Fenz) spokeswoman said it was first called to reports of a fire near Mt Creighton about 4.35pm on Friday.
The fire reached a size of about 200ha in the Twenty Five Mile Creek area by early Saturday evening.
Eight helicopters and four ground crews worked desperately to contain the fire while winds fanned it up Mt Crichton.
Fenz incident controller Mark Mawhinney, of Otago, said a helicopter airlifted a contractor from above the fire about the time it was first reported.
The spread of the fire would have prevented him from leaving in his vehicle.
The man was not responsible for setting the fire, Mr Mawhinney said.
The location where the fire started was known and fire investigators would work to establish the circumstances, he said.
Yesterday, seven ground crews and six helicopters again battled high winds to contain the fire to the Twenty Five Mile Creek catchment.
An early morning reconnaissance flight showed about 200ha of manuka and tussock had been incinerated, mostly on Mt Crichton Station where fences had been burned.
Fenz was working with the farmer to ensure the safety of stock.
By the end of the day, about 230ha had been burnt to a crisp.
While firefighters had made good progress, the fire could not be characterised as contained.
"We are optimistic, but [today’s] weather may cause us some difficulties, with very strong winds forecast before the arrival of another front," Mr Mawhinney said.
Helicopters and ground crews might have to be stood down if winds were as strong as forecast.
A MetService strong wind watch is in place for Otago and Southland this afternoon.
The steep terrain made for a very challenging operating environment and the highest point of the fire was 1300m, Mr Mawhinney said.
On Saturday, Queenstown resident David Smith said the smoke was so bad he could hardly see anything.
"You literally cannot see any mountains from the town, you can’t even see Walter Peak.
"If there’s this much smoke there’s definitely a big fire," Mr Smith said.
