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The new webcam, on the northern side of Lindis Pass on State Highway 8, was installed by Downer Group and the NZ Transport Agency at a cost of $110,000.
The pass is an important link for tourist traffic between Christchurch and Queenstown but can be affected by ice and snow. At an altitude of 965m, it is the highest point on the South Island's state highway network.
The webcam will help motorists and also allow traffic controllers and maintenance crews to monitor the highway.
NZTA coastal Otago contract maintenance manager Nick Rodger said the camera could pan, tilt and zoom.
A similar webcam was installed at the top of the Crown Range (altitude 1076m) by the MetService last year.
The Lindis Pass webcam can be found on the NZTA website.