Anti-Islamic posters have been plastered on Queenstown's new mosque.
The mosque only opened two weeks ago after the community raised thousands for a deposit towards buying its premises.
Southern District Commander Superintendent, Paul Basham, said police are working with the mosque and are taking the matter very seriously.
In Invercargill, police are also investigating reports of racist graffiti at a Kura Kaupapa and a residential address.
Meriana Johnsen spoke with Queenstown mayor, Jim Boult.