A hot air balloon has crashed close to a house near Arrowtown in Otago, leaving 11 people injured.
Police have confirmed emergency services are responding "to a report of a hot air balloon crashing/making an emergency landing incident" on Morven Ferry Road.
Emergency services were advised just before 10am.
Eleven people on a scenic flight have been hospitalised following the incident.
Queenstown Lakes mayor Jim Boult told 1 NEWS he understood, after being briefed by police, that the hot air balloon was landing when it was hit by a gust of wind.
He believed the "balloon envelope" had hit powerlines or trees near the house, but had not impacted the house itself.
Boult told 1 NEWS the field the balloon intended to land in is reportedly one of its normal landing zones.
"Our sympathies lie with those involved and we wish them the best and a speedy recovery."
Police said a total of 11 people had been injured. Two of those have serious injuries and have been taken to Dunedin Hospital by helicopter.
One person with moderate injuries and eight people with minor injuries have been taken to Lakes District Hospital by ambulance.
Fire and Emergency NZ said crews were responding from Arrowtown, Queenstown and Frankton.
The Transport Accident Investigation Commission says, "witnesses have reported that as the balloon was landing its basket shifted across the ground, its canopy connecting with power lines and then looping across a house".
"Some people were ejected as the balloon was dragged while others managed to get out."
Aurora Energy said in a Facebook post it had turned off the power in the Gibbston Valley/Arrow Junction area for the safety of emergency responders.
The streets affected are Crown Terrace, Gibbston, McDonnell Rd and Morven Ferry Rd. The total number of customers affected is 160.
Aurora Energy said customers could stay across the situation via its outages page .
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