Fire and Emergency New Zealand said today the zone covers Queenstown and Wānaka.
Anyone wanting to light a fire in the open air will need a permit.
Central and Upper Waitaki regions also have fire restrictions in place.
Fire and Emergency Otago district manager Phil Marsh said the risk of danger from forest fires was likely to increase from this weekend.
"This coming weekend and into the start of next week we are looking at a potential 'spike' period where forest fire danger will likely reach 'very extreme' in Lakes, Central and Upper Waitaki," he said.
"For that reason, we have made the decision to move Lakes into a restricted fire season."
The restrictions are in place until further notice.