The occupants of two houses in Taupō evacuated their properties as a precaution after subsidence occurred in their street just after 1am this morning.
Taupō District Council said in a statement that part of Crown Rd was closed following some subsidence that caused the road to open up, cutting water and wastewater to about 30 properties.
Power was also cut but has since been restored.
The subsidence follows a major wastewater spill into Lake Taupō on Tuesday, causing around 800,000 litres of wastewater to enter the lake.
Council chief executive Gareth Green said water tankers had been brought on site in Crown Rd for residents to access and portaloos were also available until urgent repairs were completed.
Those affected had been spoken to by council staff and had been offered free access to shower facilities.
"The cause of the subsidence and the extent of the damage is being assessed now that it is daylight," said Green.
The Underground Taupo, Turangi, Tokoroa, Rotorua Facebook page has put up photos purportedly showing cracks in Crown Rd.
Crown Rd between Miro St and Ashwood Ave, and Invergarry Rd between Arthur Crescent and Crown Rd, will remain closed until further notice. Detours are in place. Access to Tauhara College is not affected and the school is open as usual today.
Updates will be available on the council's website taupo.govt.nz and Facebook page.