The residents of the property where a mud pool opened up have been completely evacuated as the ground continues to collapse.
The mud pool opened up on the Meade St property early Tuesday morning and it has since been cordoned off.
Rotorua Lakes Council's geothermal inspector Peter Brownbridge today said the ground had continued to collapse towards a large shed on the property.
There have been events along the bank where this has occurred in recent years although in the past it has just been steam vents which have eventually stopped so this time with the mud pool forming is a bit different.
"We've lost quite a bit of land last night. The tenant has completely evacuated now and we're about to get the power turned off, remove the gas bottles from the site and make it as safe as we can so we can sit tight and see what happens.
"We will have more ground collapse if it doesn't stop so, yes, we are a bit concerned about the shed. We've sought advice about moving it but it's just not possible.
"We're trying to get hold of the owner to see what we can do to get it removed, demolished before it falls down."
Brownbridge said what was happening wasn't unexpected and asked members of the public to stay away from the Meade St property and view the mud pool from behind barriers on Tryon St if they did want to look.
"It's just getting too dangerous up the top now … That hot mud is getting thrown further and further on to the property."