His first single Just out of Reach was released in 1969, following by Brandy which reached number four on the New Zealand charts
He also acted in the 1978 feature film Skin Deep and in an episode of Shortland Street.
Mr Walters had been due to perform for the first time in 40 years in his hometown with his actor 'sister' Mabel Wharekawa-Burt at the Christmas Variety concert on December 3.
During the height of his career, Mr Walters won every major award in the Kiwi music industry and he returned to New Zealand in 2013 after a highly successful career in Australia.
One of Mr Walters' contemporaries, renowned Kiwi singer Shona Laing, who shot to overnight fame in 1972 with her song called 1905, told the Bay of Plenty Times she was saddened to hear of his death.
Ms Laing, who lives in Waikino, said she was unaware Mr Walters had been ill.
"Bunny was such a sweet man. He was awesome singer and entertainer."
Ms Laing said Mr Walters had sung on her 1987 album South, an album which sold well all over the world.
"There is a track on the album titled The Bishop. It was a haunting, grunty piece, and Bunny's vocals were just beautiful," she said.
"I was surprised by Bunny's death as he was only a couple of years older than me. Sadly, it's been a long time since I had any contact with him."
Ms Laing said she met his aunties a couple of years ago when she performed at a concert to help raise funds for the Rena clean-up.
"They told me they were all very proud of Bunny. He was really a wonderful singer, a great entertainer and a sweet man. My condolences go out to his family," she said.
There were also numerous tributes posted on Facebook about Mr Walters.
That included one from Te Kaea who described him as "a legend of the New Zealand music scene whose music would always remain timeless".
In another post, Ngati Kahu Te Iwi said it would "remember with pride" seeing one of their own "hitting the big time in little Aotearoa".
Mr Walters was expected to be taken to Rereatukahia Marae in Katikati last night.
Details of his funeral service were yet to be announced.