A police spokesman said work was under way to identify the person and establish how they came to be in the water.
Police were notified of the incident at Taieri Mouth Rd at 11.40am.
A boat named the Morning Dance helped in efforts to recover the body and the police spokesman said Coastguard assisted with the recovery effort.
"Inquiries into the circumstances of this incident are in their very early stages. Any update will be issued proactively when available".
Police this morning said the death had been referred to the Coroner.
Te Rūnanga o Ōtākou placed a rāhui in respect for the body having been in the waters off the coast of Otago.
The rāhui covers the currents and tidal movements between Blackhead and Taieri Mouth, and will lift on June 28 at 11.40am.