"We were just worried about the kids at the end of the day, we had to keep them warm - that was the main priority."
Just after 11am the group was located at Waikuku Lodge on Haurangi Road.
Several people have been approached by the alleged scammer.
Ten fire crews battled the blaze.
Emergency services were called to the scene late on Wednesday morning.
The council has once again discovered E.coli in the water.
It comes after a previous boil water notice in the town was lifted last week.
The order was issued to residents of the Wairarapa town after E-coli was detected in the water supply.
The risk to the community is "extremely low".