Transgender icon Carmen has died in Sydney aged 75 after months of poor health.

She died in St Vincent's Hospital of kidney failure on Thursday morning, the Gay NZ website reports.

Born in Taumarunui in 1935 as Trevor Rupe and one of a family of 13, she moved to Sydney to become a sex worker in the 1950s.

It was while working in Kings Cross as the first Maori drag queen that she took on the name that would see her become a heroine to the gay community.

Carmen also performed in Les Girls in Kings Cross and at the first openly gay bar, The Purple Onion.