A boat has caught fire on the Ōhau Channel near Rotorua.
A police spokeswoman said they received a report at 11.51am that a boat's engine had caught fire.
The occupants had safely got onto a dinghy and were all safe and well, she said.
The police spokeswoman could not say how many people were on the boat.
Coastguard Rotorua Lakes duty officer Cathy Punter said the Coastguard towed a family after they were trying to get through the Ohau Channel and had got stuck in mud.
She said there had been a bit of smoke but the family were all "perfectly safe".