The council delegates are being put up at some of the town's finest hotels including the Millennium and Copthorne Resort Lakefront Hotels - where the conference is being held - at an average cost of about $210 per person a night.
The annual conference started on Monday and finishes this evening.
Yesterday's speakers included Prime Minister John Key, Local Government Minister David Carter and rugby coach Sir Graham Henry.
But eyebrows have been raised at Waikato and Waipa councils' delegates, who are charging ratepayers for the flights of not only elected members but also their partners.
Waikato Mayor Allan Sanson, his deputy, Dynes Fulton, Waipa Deputy Mayor Graham Webber and Waipa councillor Dennis Finn have all taken their partners with them on the South Island trip at ratepayers' expense.
Last night, Mr Sanson defended the spend, saying it was in line with the council's policy which said it would pay for delegates' partners if there were specific programmes for them.
But Hamilton Deputy Mayor Gordon Chesterman was shocked that ratepayers were funding partners' flights and said it was "unrealistic in today's outlook".
"This is about a work business situation and councillors should not be thinking it is a junket."
At the other end of the scale, Hamilton City councillors Ewan Wilson and Martin Gallagher felt that given Queenstown's out-of-the-way location, it was unreasonable for ratepayers to fund their flights as well as accommodation and conference costs and had paid for them out of their own pockets.
Mr Gallagher, who paid $240 for his last-minute flight, was comfortable with his decision but said it didn't mean he was imposing it on others.
The councils said some partners or other Waikato delegates had also tagged along but no additional cost was incurred by the ratepayer.
Matamata-Piako District Council said paying for partners' meals and flights would be a breach of its sensitive expenditure policy.
The region's largest council, Hamilton City, and one of its smallest, Hauraki District, sent the most delegates from the area - five each - while Thames-Coromandel District Council thought it prudent for no one to attend given that it was on a cost-saving mission.
Waipa District and Taupo District delegates are among those making the most of their ratepayer-funded trip and staying in Queenstown for four nights, while delegates from other councils such as Hamilton were flying in and out and staying just two nights.
But Mr Sanson said the length of stay depended on flight availability.
"It's pretty hard to get this many delegates out of town on a Tuesday night; there are not too many flights."
But next year's conference won't hit Waikato ratepayers so hard - organisers have confirmed the 500-delegate event will be held at Claudelands Event Centre in Hamilton.
