Meteorologist Rob Kerr said the cold, dense air had covered areas of the Mackenzie Basin, Lake Wanaka and all the way down the valley to Cromwell, Clyde and Alexandra, as well as Manapouri and Te Anau.
During the day, the temperatures had warmed up enough for the air to expand and the cloud to evaporate, he said.
However, the light winds had not been enough to move the air and when temperatures started to drop in the afternoon "everything started to compress again", he said.
Holidaying in Wanaka from Oamaru, Loren Bennett said she did not mind the low cloud, saying it created a moody atmosphere.
She said the temperatures were much colder than expected but her family just "rugged up".