Arrowtowns newest cinema wouldn't be out of place in any fashionable big city. The latest attraction in this pretty South Island tourist spot is no sprawling multiplex, however. It's an arthouse cinema thats the vision of one woman, Philippa Archibald, and is a beacon of inner-city cool amid the picture-postcard setting of the historic gold-mining town.

Philippa had dreamed of being able to see the kind of off-beat, quirky films she loved, but the nearest cinema wa in queenstown, about 2o minutes drive away. That was fine if you wanted to see the latest from Hollywood. But wouldn't it be great, she thought, if I could see arthouse movies on a screen closer to home?

"My original idea was a private screening room seating maybe 10 people, showing DVD's" she says. But that idea grew into a far bigger mission, opening a boutique movie theatre down the road from where we lived. The under-taking would not only satisfy her passion for movies but create a business as well.

"In this area job opportunities are limited, so in order to get the job you want, you have to create it" Philippa says. "More women are starting up their own businesses in this district than anyway else in the country. Thats inspiring and encouraging.

Philippa, a mother of two and a former deer farmer, knew nothing about the entertainment business, but that didn't deter. She just got on the phone, started making calls and along the way the original idea grew.

"It turned into a proposal for a commercial cinema with a bar, roomy seats and an emphasis on comfort. My main focus on the cinema side is to be comfortable. People sid 'You're mad, you could have 80 seats here instead of 45...' but i wanted legroom. My idea is that you come and feel as if you belong. This is my seat where I normally sit and this is the wine I drink."

Philippa's cinema, which she has called Dorothy Browns, opened its door in September. It is named after a character from Arrowtown's past. "She was an elusive, mysterious kind of character, a photographer from the 1900s who was well-known in the towns opium dens. She was a woman with a chequed history."

In the cinema, there's a welcoming fire roaring and comfy couches covered in possum fur thats been dyed a traffic-stopping red. A sunny balcony and a view looking on to the picturesque hills surrounding Arrowtown. The cinema is just off the township's main street, up an alley near two of its busiest restaurant, the acclaimed Saffron and newcomer Pesto.

"We planned the bar to feel like a private club that was modern and funky. When you walk into the cinema we wanted it to seem as if you were entering another world full of magic and fantasy.

Sydney-based designer Sara Smuts-Kennedy was recruited for the interior fit-out. She drew inspiration from Arrowtown's Chinese heritage from the goldmining days of the 1870s. Chinese silk fabric has been upholstered on the panels covering the cinema's walls and cinema, and two large chandeliers bought in Sydney give a sense of glamour to the interior.

Closer to home, Queenstown artist and cafe owner Michelle Freeman painted the striking Oriental-influenced screens which divide the foyer from the studio space that Philippa intends to eventually use for her photography. The studio is currently used as a bookshop.

The projector was rescued from the nearby Alexandra cinema that was closing down. It works well enough, although it does mean the tradition of intermission is revived while the projectionist changes the film spools. But thats less of an interruption when the refreshments counter offers not only the standard popcorn and jaffas, but also a glass of the region's famous pinot noir. The wine list includes the produce of the Two Paddocks vineyard, owned by the region's most famous movie-star resident, Sam Neill.

The cinema is a place to linger and chat about the movies on show. So far they've included the thriller Momento, Kiwi director Harry Sinclair's The Price of Milk and the romantic adventure When the Light Comes.

"I quite like gentle movies, nothing too soppy or in your face, but movies that inspire you" says Philippa. "I love photography and if the visuals are great thats quite inspiring in itself." Current favourites include Amelie, Amores Perros and Lantana.

Arrowtown has been home to Philippa and her family for the last seven years and, in order to indulge in some non-mainstream movies, she would have to travel to Christchurch. But one day Philippa thought, "Why not bring arthouse movies to Arrowtown instead?"

Looking back on the day her dream became a reality, she says "Taking the first booking from a real customer, someone who wasn't a friend or a rig-in, was just such a thrill. Its been really great to see all sorts of people - all ages and both locals and tourists - come in"

So far the theatre is open to the public for 4 days a week from Thursday to Sunday. Philippa reckons the movie crowd will be her bread and butter, but sees the cinema as a venue for more than just flicks. "The screen can be rolled up and it becomes a performance venue. We're small - as a cinema it seats just 42 people - but we're flexible."

The seat rams are retractable so that the cinema can seat up to 60 people comfortably. Already Philippa has received approaches from community groups wanting to use Dorothy Browns as a theatre, and companies are also keen to use the space for product launches and conferences. The cinema and bar can be hired as well for private screenings and weddings.

And the films on offer won't be just of the arthouse variety, Philippa wants to hold special nights showing live rugby tests on the big screen. For the winter, she'll cater to the snow crowd with skiing and snowboarding videos.

"What we've achieved so far is just the beginning" says Philippa with a gleam in her eye.