Part of Crown and Invergarry roads in Taupō are closed today following subsidence that caused the road to open up, cutting water and wastewater to about 30 properties.
Taupō District Council said the road was closed immediately following the incident which was reported just after 1am.
The occupants of two houses closest to the damage chose to self-evacuate as a precaution.
Power was also cut but has since been restored.
There is a large hole in Crown Rd as well as a long diagonal crack that begins on the northern side of the road, runs across the road and the grass berm and resurfaces in front of a nearby house. The pavers on the house's driveway have collapsed inwards. The crack carries on from there across Invergarry Rd and stops just short of the Crown Park football fields.
Taupō District Council chief executive Gareth Green said water tankers had been brought on site 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 AC Baths to shower.
"The cause of the subsidence and the extent of the damage is being assessed now that it is daylight," said Mr Green.
Crown Rd between Miro St and Ashwood Ave, and Invergarry Rd between Arthur Cres 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.
Unison relationship manager Danny Gough said the company turned off power under the request of police from danger caused by the subsidence in the Crown Rd and Invergarry Rd area.
The risk was with a power pole and cables in the subsidence area.
Power was turned off to about 360 people from 1.40am for 40 minutes.
The power has been returned to residents but using a different part of the network and the network in the area of risk would be assessed today.
Gough said the power was still turned off through the network in the area but no residents were currently without power.
In a release today, Contact Energy said it was working with the Taupō District Council to investigate damage that occurred overnight at Crown Road, Taupō.
Two homes, one of them owned by Contact, were evacuated and there were no injuries.
The release said the Crown Rd area was known to have subsidence, and the company had been monitoring the area for "many years".
Local residents who had gathered at the cordon said their water and power had been restored but they were unsure about what was to happen next. Workers were on site assessing the cracks and making the site secure.
One man said he found out what was going on when he got up at 4am to drive his wife to work and found Civil Defence staff outside.
More to come.