The Kawarau Gorge Highway is a 60 km journey following the Kawarau River from Queenstown to Cromwell in the Central Otago region of NZ . The mighty Kawarau River drains Lake Wakatipu at Frankton and flows to Cromwell where it joins Lake Dunstan. The river is swift flowing dropping 145 metres on its 56 km course . The Gorge was first mined for gold in the 1860's and people have been coming here ever since to enjoy the ruggedness, the rapids , and the historical features which include abandoned stone dwellings ,rock shelters , water races and old gold workings. The world's first Bungy jump and the filming of the Lord of the Rings Trilogy here have contributed to the area's ongoing appeal . It is also popular for rafting , kayaking , cycling , tramping and the many wineries in the surrounding areas .