Overnight police arrested a record 29 people, mostly from around the beach area.
The witness, who did not want to be named, said he told the police they were wrong.
"I told them they were embarrassing the town.
"They shone a torch on me and did nothing, but the youths at the surf club were doing nothing wrong and did not deserve to be herded on."
A liquor ban was in place at the beach. Seven years ago several people were arrested when drunken youths rioted.
Waihi police were not available for comment this morning.
In other parts of the country, thousands of Kiwis spent the last day of 2008 at the beach as summer temperatures soared in the upper North Island.
With the mercury reaching the mid-to-high 20s, about 12,000 flocked to 21 beaches in the northern region, from Cape Reinga to Raglan.
A Northern Region Surf Lifesaving representative said beachgoers were well behaved, despite it having been a reasonably busy day for lifeguards.
Five people were rescued, 10 beachgoers were given first aid, and one search was made.
At Piha, west of Auckland, a 9-year-old girl was treated for possible spinal injuries after she felt neck pain when she dived into the surf.
As 2008 drew to a close, police braced while revellers prepared to welcome in 2009.
About 80 police were patrolling Northland holiday hotspots in the hours leading up to midnight.
Extra staff brought in from Auckland were helping in Paihia, Russell and other parts of the Bay of Islands.
Holiday wrongdoers could expect to spend time in Paihia's makeshift jail - a converted shipping container - while their paperwork was completed, or they could be taken to Kaikohe police station for processing.
About 60 officers were expected out in Whangarei, and the booze bus was targeting drink-drivers.
Senior Sergeant Gordon Gunn said an influx of visitors to the area had filled camping grounds.
Auckland was quiet in the hours before 12am, and police, fire and ambulance staff reported a low-key countdown to 2009.
Though no public events were being held, extra police would be on duty to keep order and enforce inner-city liquor bans.
In Gisborne, police had more trouble from locals than from the thousands of visitors in town for the Rhythm and Vines festival.
An officer was nursing a black eye after an altercation with one Gisborne man, and another was arrested following reports of a large street fight. Several others were arrested for bail breaches and disorder.
Inspector Mike Clement said Tauranga and Mt Maunganui were quiet mid-evening, but things were "building up as you would expect".
Crowds were about on a par with previous years, and about 53 people had been arrested at the Mount, mainly for liquor ban breaches and public disorder.
Tauranga city was quiet, but likely to fill up after midnight as public events at the Mount ended.
In Rotorua up to 25,000 people were expected at the village green for the annual Rock the Lake concert.
Senior Sergeant Ed Van Den Broek said up to 50 extra staff had been rostered on.
In Taupo thousands were expected at a concert and midnight fireworks display at Riverside Park.
Sergeant Shane McNally said extra police had been rostered on to ensure partygoers were behaving and enforce liquor bans.
In Wellington more than 8000 people were expected to attend a free family-oriented New Year's Eve Party at the Civic Square.
In Christchurch, acting sergeant Steve Burke said up to 12,000 were expected to crowd Cathedral Square for a New Year concert.
Queenstown police were hoping rain would give them a quiet night.
But the town's wet weather, which stopped yesterday's New Zealand-West Indies one-day cricket match, was not expected to stop revellers enjoying live music and a midnight fireworks display.
- NZ HERALD STAFF, NZPA
