A steaming, bubbling area of mud has caught the attention of residents in Whakarewarea, Rotorua.
Facebook user Tiahomarama Fairhall livestreamed a video of the mud pool billowing with steam on Tuesday afternoon.
"We could see the steam from our house just over the hill," a voice can be heard saying in the video.
"The perks of living in Rotorua, especially Whakarewarewa."
The video shows steam rising high into the air, with large amounts of mud being thrown out of the ground from where the steam was rising.
Rotorua Lakes Council told Newsub they received a report at 1am on Tuesday morning from a resident in Whakarewarewa.
The report said the ground was shaking and a loud noise was coming from the bank behind a house in Meade Street.
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A geothermal inspector investigated the area where they found steam venting pressure from a hole in the bank with mud exploding out of it.
The council says some of the ground collapsed later on Tuesday morning.
The area is surrounded by houses. Some nearby residents were told to move out as a safety precaution.
The area has since been coned off.
Rotorua Lakes Council says the event appears to be isolated to the area, but Whakarewarewa is "no stranger" to geothermal activity.
Brad Scott, a volcanologist with GNS Science, says the site has had several heating events over the last couple of decades.
"The cliff along the eastern side heats up, trees and bush die off and after a few weeks to a month it cools off," Scott told Newshub.
"There is a house on the property and it is usually affected by the increased activity on the site."
Scott says there are three scenarios that can develop from the activity.
"It usually slows down and stops after a couple of weeks, but it could stay active and become a permanent feature. Activity could increase, but it is less likely."
A team from GNS is on the scene and are continuing to monitor the area.