Action hero by the lake

Locals say this wouldn't be the first time that Arnold Schwarzenegger has flown his private jet into Queenstown.

Now, with echoes of the action hero's immortal line, "I'll be back", he is reported to have bought land overlooking Lake Wakatipu and to be building a luxury holiday home.

Schwarzenegger, whose career has taken him from bodybuilding's Mr Universe to Hollywood star to California governor, is said to be sinking millions into the project.

Work is yet to start on the house concerned, and Schwarzenegger's advisers strongly denied that "The Governator" was behind the development.

But the internet is buzzing with the story after the Dominion Post report, and all the carefully worded denials in the world won't make it go away.

The area's A-list population already includes actors Sam Neill and John Travolta, and country singer Shania Twain, who owns property near Wanaka.

But the attention that a figure of Schwarzenegger's stature would bring is incomparable. Queenstown Lakes deputy mayor John Wilson said,

"That someone of his stature has chosen the Lakes area of Queenstown is recognition of the beauty of the place, and that will attract some interest from the American public and elsewhere."

Yesterday, Schwarzenegger's press secretary Aaron McLear said: "He is not building a home in New Zealand."