However, it was due to ignorance, rather than wilful flouting of the rules, they said.
It comes as police and the district council prepare for an influx of 100,000 holiday-makers.
Queenstown area response manager Senior Sergeant Paula Enoka said police were aware of many people drinking in the area between 8pm and 10pm.
A new Queenstown Lakes District Council bylaw, which came into effect on December 1, banned drinking outdoors in the district's town centres and some other public areas on National Crate Day (or any other similar event or promotion).
It also extended the existing year-round 10pm-8am drinking ban in streets and other public areas by two hours, beginning instead at 8pm.
A full 24-hour liquor ban will be in place from December 27 until January 6.
"It's worth noting, however, that many of the people drinking had no knowledge of the liquor ban, nor had they seen any signage, so many of the people breaching the ban were not aware of the ban," Snr Sgt Enoka said.
"Police have been focusing on educating people rather than issuing infringement notices so the ticket numbers definitely don't reflect the amount of people breaching."
The Otago Daily Times asked how many fines had been issued since the new bylaw took effect, and how many of those were issued on Crate Day.
Police said that would have to be requested through the Official Information Act.
Snr Sgt Enoka said police had spent "considerable time" trying to educate members of the public about the bylaw.
"To help with the QLDC bylaw we have been delivering the information to off-licences and locations that may attract travellers such as backpackers."
Public education was particularly important as the festive season approached, she said.
"We don't want to stop people celebrating; we just want them to do so safely."
They would continue to work with local stakeholders to ensure the sale and consumption of alcohol was carried out "safely and responsibly" and any harm caused by excessive or inappropriate drinking was minimised.
The council was also taking measures to prepare for the holiday season, including free temporary parking at Warren Park between December 17 and January 13, increased rubbish collection, extra town custodians, and Portaloos at holiday hotspots over Christmas.
The Red Frogs will be back between December 29 and 31, operating "chill-out zones" where people can hydrate, eat and charge their phones.
The Responsible Camping Ambassadors will also be at the camping and service hubs and roaming the district educating campers on how they are expected to behave while in the district and directing them to appropriate camping locations.
