A 27-year-old local man was stabbed outside a house on Lochnagar Dr about 9.30pm.
Members of the man's family drove him to Lakes District Hospital, where he was treated for puncture wounds in his chest.
He was transferred to Dunedin Hospital later that night.
Detective Senior Sergeant Malcolm Inglis, of Queenstown, said there was no reason for people living in the suburb to feel concerned.
"We're confident it's not a random attack."
Police were unsure of the motive, but were not ruling out a drug connection.
"People generally don't stab someone unless there's a reason or motive behind it."
He confirmed the victim probably knew his attacker, and met the offender outside a house at the end of the street.
Police had not yet been able to speak to the victim, who underwent a second operation on Monday.
Police were interested in hearing from anyone who saw vehicles in the area between 9.20pm and 10pm on Sunday.
