Eleven helicopters and seven ground crews are battling the fire at Lake Ohau.

The fire continues to burn over approximately 1600 hectares.

A Fire and Emergency spokesperson said as well as the fire crews and helicopters, two diggers and a grader are working to create firebreaks to help safeguard critical infrastructure, including the main power lines servicing Queenstown and Wanaka.

It is estimated that at least 20 homes have been damaged or destroyed in Lake Ohau Village.

An Urban Search and Rescue team will be deployed to make a full assessment of the village.

All residents are accounted for and there will be crews in the village overnight in case of any flare ups.

Due to the high winds it has so far been unsafe for residents to return to their homes to assess damage.

A Fire and Emergency spokesperson said crews are mindful of how upsetting it is for the residents and their safety is our main concern at this time.

The high winds meant the fire could not yet be contained and the situation may change rapidly with any shift in the wind.