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An Israeli woman has died in a crash on the Te Anau- Milford Sound Highway, just south of an area called Knobbs Flat.
Senior Sergeant Cynthia Fairley said a Toyota Corolla rental car was heading south from the Homer tunnel when it left the road, hitting a tree.
Police were notified about 12.10pm.
The rear seat passenger, a 61-year-old Israeli woman, died at the scene.
The driver and another passenger were taken to Invercargill Hospital for treatment. Their injuries have yet to be confirmed.
The crash was attended by Te Anau Police, one Fire Brigade Appliance and staff from Downers EDI Works.
A full investigation into the crash has been opened.