The urban legend of a haunted house in Central Otago has been turned into a horror film which will be released in cinemas on October 29.

A haunted house legend in Central Otago has captivated the imagination of a New Zealand film-maker and turned into a horror movie.

The Dead Room, directed by Jason Stutter and co-written by Stutter and Kevin Stevens, is based on the urban legend of two science teachers who in the early 1970s visit the historic rural farmhouse to debunk claims the house is haunted. They reportedly flee because of some terrifying and unexplained events.

Stutter said during the film shoot of a previous movie in Hawera, the crew was winding down at a pub talking about New Zealand stories that could be turned into movies when he overheard a man telling a tale of a haunted house in Central Otago.

supplied The horror film will be released in cinemas on October 29.

"I thought it was kind of cool then I went to an antique shop in Thames and found a book about New Zealand legends and there was this story again."

Stutter and Stevens initially talked about writing a New Zealand version of a Paranormal Activity-type movie.

However, when they put pen to paper in 2012, the story turned into a classic horror about two paranormal investigators who hire the services of a reluctant spirit medium who goes with them to the house where a powerful spirit resides, protecting the house's secrets at all costs.

"We have made a really scary traditional movie - not one of those hidden footage films. It is a New Zealand take on that genre inspired by this house."

During the pair's research they tracked down the house's location and its owner.

"We asked if we could check it out and he didn't initially want us to. He was worried about people knowing where it was. But he let us go down there and checked out the house. It was really creepy."

There were some unexplained occurrences while the crew was on location to decide if it was feasible to film there, including locked doors opening and camera equipment not working, he said.

"I would not want to stay there."

They decided to rebuild the house in a Wellington studio.

"It's been a really fun movie to make. It is also using a new sound technology, Rumble, where in key parts of the movie the ghost does stuff and it shakes the cinema. The sound is so deep you feel the ghost's presence. It's the first time the technology has been used anywhere."

The film had a line-up of talented cast, with the three central characters played by Jed Brophy (The Hobbit), Laura Petersen (winner best supporting actress Shopping) and Jeffrey Thomas (Lord of the Rings) who helped draw out the true scare and thrill of the story, he said.

"We wanted to make a movie that was an immersive experience, taking the audience into the haunted house with the characters. We didn't want to make everything go crazy from the get-go. We wanted to make it really scary and spend times getting people to like that characters...for the audience it is going to be a lot of fun. I think people who are into scary movies will really enjoy it."