Fire and Emergency New Zealand’s Senior Station Officer Mike Ide, of Frankton, told the Otago Daily Times at the scene a digger had "ruptured" a gas main.
"In response we had to evacuate 300m in all directions."
He confirmed they had isolated the pipe and gas detectors were being used to monitor vapour levels.
The firefighter volunteers were assisted by police as they advised those living nearby of the situation.
A St John spokeswoman said one person was assessed at the scene but did not need to be taken to hospital.
Fenz confirmed the gas company shut down the mains supply at 10.25am and residents were allowed to return to their homes shortly after 11am when the issue was resolved.
A number of people, from the nearby Remarkables Park Town Centre, watched as firefighters, who were wearing protective breathing gear, dealt with the situation.
