"I felt I needed to step away, freshen up, have a bit of fun and really find my passion for the sport again. I got to the start line just now and I was stoked to race.
"I had a bit of a smile on my face and I was thinking 'this is cool - this is exciting again'. It was definitely a boost of confidence."
Hatton finished in 1min 52.47secs, the first time she's beaten Carrington since 2008. Rising Hawke's Bay star Aimee Fisher completed the upset by finishing second in 1:53.25.
An uncharacteristically flat Carrington, who finished in 1:53.75, was pragmatic about the result, relishing the increased competition in the women's ranks.
"It's always disappointing when you want to be better but Teneale and Aimee are paddling so well and you can't detract from how good they're going," Carrington said. "It's good to have a hit-out and it also pushes me knowing the spot isn't mine until I prove it."
Carrington qualified two Olympic spots with her historic world championship 200m/500m double in August, though her selection still needs to be confirmed.
Although this weekend's regatta was the first official selection event of the season, February's national championships and past performances will also be taken into account.
Meanwhile, Fisher, who was part of the New Zealand women's K4 boat who have already qualified for Rio, completed a dream weekend by taking out the K1 200m final, although Carrington and Hatton didn't race that distance.
She clocked 41.33secs in the sprint, finishing ahead of her three K4 teammates, Caitlin Ryan (42.21), Kayla Imrie (42.86) and Jaimee Lovett (43.31).