The Hyde-Macraes Shear Zone (HMSZ) is a regionally continuous, low-angle, NE dipping (~15°) late-metamorphic thrust zone in the Mesozoic Otago Schist. The shear zone, which is host to large volumes of mineralised schist, consists of foliated fissile schist with some massive schist pods. Two sets of quartz veins are found within the HMSZ: thrust-related, shallowly dipping veins that were emplaced parallel or sub-parallel to the shears and swarms of steeply dipping extensional veins, which cut across the metamorphic foliation. The latter are restricted to the massive schist pods. Mutual cross-cutting relationships occur between steep extensional veins and shallow-dipping veins, suggesting that they formed contemporaneously. The co-existence of these two vein types locally implies local rotation of the principal stress axes to produce extensional veins within a regional thrust setting. The steep extensional veins are spatially related to lateral and oblique ramps within the HMSZ. Three-dimensional mechanical models show that these lateral or oblique ramps can produce favourable conditions for extensional vein formation when combined with a high fluid pressure and oblique convergence. Mechanical requirements include a reduced differential stress, a positive volumetric strain and an increase in the horizontal shear stress. Our models show that under certain conditions, it is possible for extension-related structures to form during shortening because of local changes in the stress state without the need for a regional scale switch in the imposed stress field. The convergence direction across the HMSZ during formation of the steep extensional veins was ~WNW.