A 200 metre area in Tokoroa has been cordoned of by police and the Fire Service, after contractors burst a gas main.
The natural gas main had been ruptured this morning in Clyde St, a fire spokesman said.
A school, a kindergarten and houses in neighbouring streets were evacuated, as emergency services waited for Vector contractors to arrive to seal the break.
"There's no immediate danger, we just need to keep people clear of it,'' he said.
Pam Anscombe, who lives about 50 metres from where the main was struck on Clyde St, said the smell of gas was almost overwhelming, even behind the cordon 200 metres away.
"First of all they said we could stay inside and close the doors and don't let the kids out. Then about half an hour later the police came and said we needed to get out,'' she said.
Behind the cordon up the road, "the fumes are really bad,'' she said.
"It's bloody hurting my eyes. You can see the fumes. It's getting really bad.''