A witness said the water went "a long, long way out", dropping below low tide levels, even though it was around high tide.
Civil Defence had now blocked off all roads to the beaches.
There were still "idiots" been seen heading to the beach with surfboards on their cars, the witness said.
Civil Defence volunteers and emergency service personnel had been door knocking at beachfront homes in the city and small settlements along the East Coast advising people of the warning and recommending they move inland or to higher ground.
At that stage many people had already been contacted by relatives, neighbours and friends who had already heard of the warning in some cases on overseas media.
Most residents, by now familiar with the procedure after several alerts over the past two years, moved to higher ground automatically, "just in case". Many boat owners, including Eastland Port, put vessels out to sea.
By 8am when the wave was due to arrive, hill tops in and around Gisborne were chocabloc with people and cars. On Kaiti Hill overlooking the city and port, a few people could also be seen on the city beachfront below, waiting to watch for a wave.
An hour after the tsunami was due to hit the Chatham Islands, residents have seen big changes in water level, but no big wave.
Chatham Islanders took to what little high ground there is, after warnings that a major earthquake in Chile overnight had generated a tsunami.
One resident said sea levels had changed dramatically.
"Everyone's gone to higher ground we are on higher ground but we've got a perfect view of the bay," Chris told NZPA. She did not want to give her surname.
"The water is starting to disappear from round the bay, all the rocks are uncovered, the water is definitely moving out. Now the rocks are covered up again. There's no big wall of water yet. It looks very unusual, very unusual.
"It's kind of high tide here at the moment but sort of in no time the rocks became uncovered but they're covered up again. It's (happening) very slowly." Everyone was relatively safe and all the civil defence mechanisms were in place, she said.
There was tension as residents waited to see if the tsunami would actually hit.
"Everybody looks a bit awe-struck like: 'is it really going to happen'. The rocks are all covered up again now and no big wall of water. But it is quite amazing to watch how fast it all went out."
"They're not nervous or scared because they're all well-prepared. Which is a good thing with the Chathams - everyone is helping everyone else and everyone is well-prepared.
"Most of the animals on lower ground likely to be affected have been moved. People have generally pulled together and done what they should do which is pull together without panicking. Everybody here is cool, calm and collected and in good spirits we're well-prepared and safe."
Sightseers keen for a glimpse of the predicted tsunami are hitting the roads to Hawke's Bay's coast. Emergency services said the tsunami danger message did not appear to have gotten through to many people, who were heading for areas in the process of being evacuated.
Hastings District Council spokeswoman Erin Harford said the unexpected strength and height of waves hitting the Chatham Islands had prompted emergency services to upgrade preacautionary measures elsewhere. The coastal settlements of Ocean Beach and Waimarama have been evacuated, and police are now door-knocking at Haumoana and Te Awanga, warning residents it would be a good idea to leave.
Eleven houses right on the beach at Te Awanga are particularly at risk. One of those residents was recently prosecuted for building an illegal sea wall to stop the heavy seas eroding his backyard.
In the Hawke's Bay, sightseers keen for a glimpse of the predicted tsunami were hitting the roads to the coast.
Emergency services said the tsunami danger message did not appear to have gotten through to many people, who were heading for areas in the process of being evacuated.
Hastings District Council spokeswoman Erin Harford said the unexpected strength and height of waves hitting the Chatham Islands had prompted emergency services to upgrade preacautionary measures elsewhere.
The coastal settlements of Ocean Beach and Waimarama have been evacuated, and police are now door-knocking at Haumoana and Te Awanga, warning residents it would be a good idea to leave.
Eleven houses right on the beach at Te Awanga are particularly at risk. One of those residents was recently prosecuted for building an illegal sea wall to stop the heavy seas eroding his backyard.
Sightseers keen for a glimpse of the predicted tsunami are hitting the roads to Hawke's Bay's coast. Emergency services said the tsunami danger message did not appear to have gotten through to many people, who were heading for areas in the process of being evacuated.
Hastings District Council spokeswoman Erin Harford said the unexpected strength and height of waves hitting the Chatham Islands had prompted emergency services to upgrade preacautionary measures elsewhere.
The coastal settlements of Ocean Beach and Waimarama have been evacuated, and police are now door-knocking at Haumoana and Te Awanga, warning residents it would be a good idea to leave.
Eleven houses right on the beach at Te Awanga are particularly at risk. One of those residents was recently prosecuted for building an illegal sea wall to stop the heavy seas eroding his backyard.