This afternoon, MetService meteorologist said Emma Blades said snow was falling in places such as Wanaka and Queenstown, where temperatures had reached 0C.
"It doesn't look like its quite settled because it's not quite cold enough on the ground... we are getting snowfall at the higher levels."
She said there were two things creating the significant snowfall.
"We've got a warmer moister flow coming over from the Tasman Sea, and because it is warmer air it can contain a lot of moisture.
"As it falls we've got a cold blast from the south which is going underneath it, so as the snow falls it stays as snow, it's not melting, and that's why it is going all the way to the ground."
Ms Blades said the snow was accumulated over many hours, and forecasters were expecting it to keep falling through to tomorrow afternoon.
"That's why we've got the snow warning out, it's accumulation of significant snowfall over a 24 hour period."
The snow would continue to fall well into this afternoon in the north and west of Otago and the north of Canterbury.
There would also be snow in places such as southern Otago, Queenstown and the Southern Lakes District.
Jim Ryan, from Arrowtown in Otago, has been forced to find accommodation at a hotel in Omarama for the night, after the Lindis Pass was closed due to heavy snow fall.
He said he was currently shovelling snow off his car.
Mr Ryan said he was disappointed that it had taken the New Zealand Transport Agency (NZTA) most of the morning to put a warning on its website.
"We can handle it all right as you can see in Arrowtown, but what I was concerned about was two-wheel drive rental driver owners have no idea how to handle this.
"It was total carnage up the top of the Lindis this morning. There was plenty of warning about this weather bomb that was coming through."
The NZTA has urged those travelling across the top of the South Island to plan ahead for their travel due to the severe weather forecast.
The agency's central regional performance manager Mark Owen said when bad weather hit, the roads were more dangerous.
"Drivers should expect wet, slippery roads, potentially leading to surface flooding and slips. High winds are also expected, which is a particular risk for anyone on a bike or motorbike, or high sided vehicles like vans and campervans.
"If you're caught in the weather, please drop your speeds, increase your following distances, make sure you have your headlights on, and keep your eyes on the road at all times."
Wakatipu High School, Remarkables Primary School, Queenstown Primary School, and St Joseph's School are all closed today; however, Arrowtown School said on its Facebook page it was remaining open.
Cold, dry air coming up from the south meeting warmer, wetter northwesterlies over the lower South Island meant ripe conditions for heavy snowfall in the area, Philip Duncan of WeatherWatch said.
"Overnight tonight a southerly comes in, [meaning] snow on the ground tonight.
"The average line for snow is 100m, so not everyone will see snow at sea level," he said.