Mr Williams (43) will take over on Monday from outgoing chief executive Mandy Kennedy, who is relocating to Christchurch with her family.
Trust chairman Tony McQuilkin said trustees were delighted with the number and calibre of applicants.
Commenting on Mr Williams' selection, he said ''the tool-box was full''.
''Willy is a well-respected and well-known local, he's got proven achievements personally, in his sporting career and business-wise, and we think he can translate those skills into taking the trust ahead.''
Mr Williams, who has long been a passionate supporter and user of the trust's network of cycling/walking trails, said the role was a ''fantastic fit'' for him.
Raised in England, he and his wife Lucy came to Queenstown for a one-year working holiday 20 years ago so he could continue his mountain climbing hobby.
After settling in the Wakatipu, he became a successful adventure racer and a champion mountain biker.
For 12 years, Williams and Haydn Key owned a successful branch of R&R Sport outdoor equipment store before The Warehouse Group's Torpedo7 group bought their chain.
Mr Williams believed connections he had made through business and sport would help a lot in his new job.
He said the trust had established a strong foundation under the direction of Mrs Kennedy and her predecessor, Kaye Parker.
''It's a real testament to the trust how well the trails have become a big part of what Queenstown can offer.''
One of his priorities would be to create trail connections to link all the communities in the Wakatipu basin.
''You look at traffic congestion - the trails are a perfect avenue to be a different mode of transport.
''I would really like to see more usage of the trails. And I think there's a huge opportunity to become a champion of getting kids back on bikes.''
-By Philip Chandler
