A car has been recovered from the water following a fatal crash on Chapel St.
About 20 people dived into Tauranga Harbour in a desperate rescue attempt after a car plunged into the water and began sinking on Wednesday evening.
Police confirmed a 65-year-old local woman died at the scene.
The police dive squad and a crane were involved in the retrieval of the vehicle on Thursday morning.
One lane of Chapel St was partially closed for a time.
The three-vehicle crash happened at the traffic lights at the turnoff into the shops with one vehicle becoming submerged.
Police investigation underway
A police spokeswoman said police were working with CCTV operators and members of the public to establish the events leading up to the crash.
"Early indications are that three vehicles were involved in the collision. It's understood the vehicle in the water had two occupants, a second vehicle had another two occupants, and a third vehicle had one occupant.
"Police Serious Crash Analysts are still in the early stages of the investigation. The exact cause is yet to be determined," the spokeswoman said.
Police acknowledged those members of the public who helped at the scene and would like to hear from anyone who witnessed the crash. Information can be provided to police via 105, quoting file number 211208/1665.
Alternatively, information can be provided anonymously to Crime Stoppers on 0800 555 111.
"It went down real fast"
Witness Errol Hodgson told the Bay of Plenty Times he was driving home from work when he saw two vehicles crash at the Chapel St lights then a third, an SUV, come "out of nowhere".
"The SUV went up over the island and straight over the edge [into the water].
"It went down real fast.
"I stopped here [about 20m away] and ran over there. The rear window was disappearing.
"The windows must have been down because it went down so fast, it was ridiculous."
He said a man got out of the sinking car himself.
"They tried to get the other person out. They were there a long time. The car kept moving down there because of the currents. It's still there.
"There were people running everywhere."
Kran Radford and Rem Mangakahia were also driving home when they saw the commotion.
Mangakahia said: "We saw everybody started to run so we parked up, we wondered if we should help. Everyone was running and diving in ...
"They were trying to get dive bottles and stuff from the [hunting] and fishing shop to help.
"They did pull out a lady. They put her on some sort of floating board and carried her [out]."
Radford said there were about 20 people in the water, including children, so they did not get in.
Another witness estimated the person was trapped in the car for 15 to 20 minutes.
A worker in the area said she heard a "big bang" and people started running outside.
By the time she got outside, she saw a vehicle was in the water near the traffic lights.
"Police were trying to rescue someone ... I could see people swimming, trying to get someone out [of the vehicle]."
"I could hear someone crying."
Another witness said a person from Rebel Sport, located across the road, supplied goggles to help people see through the murky water.
A retail worker was on Takitumu Dr warning motorists that they could not access Chapel St because of the accident.
He said a car went into the water with people in it and about 20 other people dived in to try to rescue them.
A St John Ambulance spokeswoman said one patient in a moderate condition and two patients in a minor condition were treated at the scene.
Police said an investigation into the circumstances of the crash was ongoing.
- Additional reporting by Kiri Gillespie and Samantha Motion