We decided to stay in Arrowtown instead of Queenstown partially due to the fact that we couldn't find a last minute place to stay in Queenstown. We found a great little house in Arrowtown on Airbnb.com. At $253 USD a night for four people, it was over our regular budget of $50 USD per person per night, but it totally fit our needs. We ate a few meals in to make up for the rental cost. We relaxed on the front porch and took walks down the river path a couple of blocks away. Once again, New Zealand knows how to make nature accessible.
There are restaurants, shops, and winery tasting rooms to visit. One restaurant we spend a lot of time at was the Fork and Tap. It had delicious food and a good drink list. And while it wasn't cheap, it made for a great birthday celebration spot for our group. The Postmaster's Residence also looked lovely but we didn't make it in.
Arrowtown was so laid back and quaint. It didn't seem as touristy as Queenstown. If I could go back, I would eat my way through this town.