All residents of an earthquake-struck area on the southwest edge of Lake Taupo have voluntarily evacuated their homes following fears of a landslide.
Residents in Waihi Village, northwest of Turangi, were asked to consider evacuating their homes after several earthquakes, two of which measured more than 4.1 on the Richter scale, struck the area at the weekend.
With heavy rain also hitting the area and more rain forecast, the Waihi Village residents were asked to consider evacuating due to the risk of a landslide in the Hipaua Thermal Area above the village.
By 4.30pm they had heeded the advice and evacuated, Taupo District Council local emergency management controller Shamus Howard said.
Mr Howard said a local state of emergency had been declared for the Turangi-Tongariro area to keep people away from the evacuated village.
"Although the village is now clear of people the potential for people to go back in is high, so under the powers of declaration we can keep people safely out of the area.
"Previously unwell persons are being accommodated in Turangi, all other people are with family and friends."
Sometimes called the "steaming hills", it has been vulnerable to slips in the past, the last of which was in 1905. Mr Howard said some of these slips have resulted in deaths.
He said risk factors included earthquakes, heavy rain and changes to the geology which indicated slippage or other warning signs.
Mr Howard said State Highway 41 between Tokaanu and Pukawa would remain open in early evening to allow some people to travel home but it would be closed later tonight to all but emergency services.
He said the risk to travellers on the road wasn't as high as for Waihi Village residents, "but a vehicle is in a critical zone for 10-15 seconds and there is some risk".
"We are also keeping an eye on the weather and will monitor closely overnight."
Initial assessments from aerial surveys indicated some minor damage, but nothing significant.
Mr Howard said Waihi Village residents had noted birdlife was silent and black swans had moved from their usual area.
He said there was some reports of streams drying up and of other spots where streams started to flow where there were none before.
"We would be very concerned if one of the major streams in the main thermal area stopped flowing as this may indicate there is water being diverted underground or there is a major blockage that may break and cause a deluge to head downstream."
Though the village waterfall had moved significantly, council staff didn't believe it was due to the rain, Mr Howard said.
He said staff would reassess tomorrow whether the Waihi Village residents could return to their homes.