Motorists were warned to expect long delays after power lines came down across the Shotover Bridge near Queenstown.
Emergency services were called to the downed lines near Lake Hayes Estate, just off State Highway 6, at about 8.30am.
A spokesperson for Aurora Energy said Arrowtown, Lake Hayes, Dalefield, Gibbston, Crown Range and surrounding areas had been affected by power cuts.
Power was restored to all households just after 12pm.
State Highway 6 was reopened to traffic late morrning, motorists were warned of continuing delays due to the traffic build up from the closure.
The cause of the downed power line is under investigation, Aurora Energy said.
Meanwhile, the Remarkables ski field had to put its lifts on hold during the outage.
Temperatures in the area are down to -1C.