Phaulacridium otagoense is an endemic New Zealand grasshopper found at low elevation throughout the central South Island (Mackenzie Basin and Central Otago).

[1] The New Zealand P. otagoense is found on very dry slopes & riverbeds between an elevation of 140 metres (460 ft) on the Earncleugh Historic Tailings Reserve (45°14′08″S 169°21′17″E / 45.23553212°S 169.354802°E / -45.23553212; 169.354802) and 1,200 metres (3,900 ft) on the Benmore Range (44°24′11″S 170°06′35″E / 44.40318866°S 170.1097396°E / -44.40318866; 170.1097396).

[1] The distribution of P. otagoense is being reduced by expansion and hybridization with P.

[2] Where these two grasshopper species meet populations consist of individuals with mixed phenotype, intermediate between the two parental taxa.

However, unlike Phaulacridium marginale no fully winged adults have ever been found.