Southern District Health Board estimates there are close to 1200 cases of Covid-19 in its region, much more than the official figure of 690.
In a statement on Tuesday, the DHB said case numbers had been rising fast in the past two days and the virus was widespread, particularly in Queenstown (270 active cases) and Dunedin (349 active cases)*.
"The Southern district, particularly Dunedin, has a large population that is registered with a general practitioner in another area of New Zealand.
"This links their NHI number to an address in a different area of the country meaning that the Southern districts actual case numbers are much higher than those reflected in the daily tally released by the Ministry of Health."
The DHB said local labs were at capacity because of the high demand for PCR testing, and changes were under way to bring in more widespread use of rapid antigen tests (RATs).
"Due to the large demand on our labs the processing of swabs is taking time. Lab staff are doing an amazing job to process the huge demand. Please be patient in waiting for your results."
Some people with symptoms, especially younger adults, will be offered RATs at community testing stations.
The DHB also urged people to only get tested for Covid-19 if they had symptoms or were a close contact of a confirmed case.
As of 1pm 21 February, there are 223 close contacts isolating throughout the Southern district - 56 of these are in the Queenstown-Lakes District and 159 are in Dunedin.
Auckland, Northland and Waikato have also introduced RATs at community testing sites to ease pressure.
Southern District Health Board said those who tested positive via PCR would receive a text message notifying them of the result, and cases should fill out the online survey provided through the link in the text.
"This will ensure you can receive the appropriate care and support.
"If you do not have a cell phone you will receive a phone call. You will also receive a phone call if you do not fill in the form within 24 hours."
On the other hand, the DHB said those who test positive via a RAT should call 0800 847 8719 to ensure they were registered as having tested positive, and to be linked with the support and care they might require.
Testing locations can be found on the WellSouth website.
*The Ministry of Health's daily reported cases may differ slightly from those reported at a DHB or local public health unit level, because of different reporting cut off times and the assignment of cases between regions.