Police are providing support to their next of kin.
The cause of the capsize will be investigated, but the police say they are unable to provide any further details at this time.
Police thanked boaties, Coastguard South Taranaki and Coastguard Whanganui volunteers, and other emergency services for their help.
Coastguard said the alarm was raised after Coastguard South Taranaki witnessed the vessel capsize while watching Pātea Bar cameras.
“Volunteers South Taranaki immediately responded.
“Coastguard’s national Operations Centre was also notified by police shortly after ... Coastguard South Taranaki’s rescue vessel remained on shore, as there was no indication anyone was still missing.
“Instead, volunteers supported police from land.
“The two people who sadly lost their lives, as well as a third person who was taken to hospital, were brought to shore by nearby boaties who responded quickly to the call for help.
“Some of those on board happened to be off-duty Coastguard volunteers who were out fishing in a private capacity.”
“This is a devastating outcome, and our hearts and aroha are with the whānau and friends of those involved.
“We’d also like to acknowledge and thank the nearby boaties – including our own off-duty volunteers – who stepped in to help during this tragic incident."