Overnight rain has helped suppress the Walter Peak fire, with firefighters back in the air this morning after operations stood down at dusk Wednesday.

The fire has now burned through an estimated 1,400 hectares of mainly tussock, scrub and patches of trees on the Queenstown lakefront station. It is not yet controlled or contained.

Five helicopters with monsoon buckets worked the fire through Wednesday, joined by ground crews protecting the Walter Peak homestead and strengthening containment lines. The fire has pushed through from Walter Peak Station into the McKinley's Creek area, spreading onto adjoining conservation land and Cecil Peak Station. No buildings have been damaged, and no structures or livestock are considered at immediate risk.

Fire behaviour has been driven by steep terrain, heavy vegetation and shifting winds — conditions that have made this one a genuine challenge for crews. A specialist investigation into the fire's cause will be conducted in line with Fire and Emergency procedures, but that's a matter for after it's out.

Thursday's response is scaling back up: five aircraft supporting 23 firefighters on the ground, backed by incident management and support personnel. Crews from the Department of Conservation Wanaka and Queenstown teams, the Glenorchy Volunteer Rural Fire Force, Hedgehope, and Arrowtown Volunteer Fire Station are all attending.

The 500-metre exclusion zone off the shoreline in front of Walter Peak Station homestead remains in place. When helicopters are filling monsoon buckets around Cable Bay, the Queenstown Lakes District Council Harbourmaster and Coastguard will be on site directing boats clear of the area.

Fire and Emergency is asking the boating community to stay away. "We ask the boating community to continue staying away from the Walter Peak fire area, where the exclusion zone remains in place for the safety of firefighters, helicopter pilots and the public," the update said.

Smoke is easing but has not gone. It may still be visible across parts of the Whakatipu Basin and surrounding areas. Anyone sensitive to smoke is advised to take precautions and avoid exposure to poor air quality.

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