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Queenstown (Māori: Tāhuna) [3] is a resort town in Otago in the south-west of New Zealand's South Island.It is the seat and largest town in the Queenstown-Lakes District.. The town located on the northwestern edge of Lake Wakatipu, a long, thin, Z-shaped lake formed by glacial processes, and has views of nearby mountains such as The Remarkables, Cecil Peak, Walter Peak and just above the ...