A burst water main has sent a mass of water flowing down Queenstown Mall, turning it into a flooded mess.
Footage sent to 1 NEWS NOW shows brown water flowing around empty tables and chairs in the popular Queenstown shopping district.
Onlookers are held back behind security tape watching the flood unfold as firefighters attend the scene.
A statement released by the Queenstown Lakes District Council says: "Contractors have successfully shut off the water to assess the damage and will start working on fixing the fault.
"Rees Street is currently closed to traffic and contractors are on site talking to affected businesses. It is likely that water in the immediate vicinity will remain off overnight."
The council says a further update will be provided by 8am tomorrow, unless the situation changes.