A relation between low-angle shear zones and folds is established in the dynamically deformed Otago Schist. These events occurred during the Cretaceous towards the close of the Rangitata Orogeny (D 3 _ 4). Prominent low-angle north-dipping shears are often subparallel to F 3 axial planes. South-dipping mesoshears are present as an antithetic set. Thrusting was initiated on the shear zones after F 3 folding, accompanying continued regional compression. In western sections, two sequential F 3 fold subphases are distinguished, but to the east the earlier phase is weakly preserved. The existence of two postS 2 folding events, and dominance of north-dipping shears, is important in relation to potential sites of gold mineralisation. Structural factors influencing the development of dilation sites associated with gently dipping macroshears include the F 3 axial plane geometry, variations in fold intensity, and lithology-shear strength control. The lack of widespread low-angle macroshears is believed to be due to the dominantly segregated, coarsely layered nature of the Otago Schist and the localisation of F 3b folds.