Police received a report on Saturday (March 24) that a diver had been recovered unresponsive from the water near Bauza Island, Doubtful Sound.
Police have since released the name of the diver as 54-year-old Ian Gregory Wells from Roxburgh.
The report came from a boat on the water in the same area.
A distress call was sent out and a second nearby vessel responded as they had a doctor on board.
The doctor performed CPR on Mr Wells but unfortunately he did not survive.
There was a party of nine people on the boat, three of whom were diving, when the diver got into trouble.
The two other divers who assisted in bringing Mr Wells to the surface were flown to Invercargill Hospital as a precaution.
The death will be referred to the Coroner.
The police extended their sympathies to Mr Wells' family and friends.