A Fire and Emergency New Zealand spokesman said the first report of the fire, on a rural property in Mooney Rd, came in about 12.10pm.
Covering an area of about 80m by 80m, it was brought under control within about half an hour.
Fire appliances and tankers from Arrowtown, Frankton and Kingston responded, although the Kingston crew was turned around before it arrived.
The fire appeared to have been started by a cigarette butt, but that had not been confirmed.
Some young trees on the hillside were destroyed, but no buildings were damaged.