The on-water component would run from noon through to about 3.30pm.
It would involve multiple coastguard units and surf assets conducting set search patterns, in response to a distress scenario, up to two nautical miles off the coast.
Waikato police said in a statement it was taking part in the exercise alongside a number of agencies, including Coastguard New Zealand and Surf Lifesaving New Zealand.
“These types of exercises provide a valuable opportunity for agencies to come together to train, and to test plans/processes and new concepts in a safe environment; the exercise will involve water-based activities.
“These exercises could not happen without the support of our local communities, and we thank them for their co-operation and support.”
A police spokesperson said the Waikato Police District Search and Rescue team would be based out of the Whitianga Coastguard base for the exercise.
“The day will start with a desktop exercise where the management team will co-ordinate a plan to respond to the given scenario; in the afternoon the on-water teams will deploy.”
Coastguard Whitianga said a secondary exercise was scheduled for 2pm involving surf lifesaving assets, which would take place in the vicinity of Cathedral Cove.
“It may involve some on-water activity in the area immediately off the beach.”