The search efforts were witnessed by Mount Maunganui recreational fisherman and Mount Ocean Sports life member Steve Penn who was out fishing on the Bay.
He heard a report on Marine Radio that what looked like a chilly bin lid has been sighted from a helicopter. A boat sent to the scene also recovered the chilly bin.
Mr Penn saw an Orion doing a grid search in quite a big sweep from Karewa Island towards Waihi Beach, out to Mayor Island and back towards Motiti.
The missing fisherman was understood to have been fishing off Karewa Island 11km north of Mauao in his aluminium runabout powered by a 40hp outboard motor.
The strong coastal current running up the coast meant the search extended well towards the Coromandel Peninsula.
Police thanked the efforts of the Westpac Rescue Helicopter from Whitianga and the Trustpower TECT Rescue Helicopter, as well as Coastguard from Waihi, Tauranga and Maketu, and Coastguard Air Patrol.
Mr Penn said sea conditions on Wednesday were flat with no swell - similar to Tuesday when the missing man left in his boat for a morning's fishing.
He said the conditions meant it would have been quite safe for a 3m runabout to head to popular fishing spots off Karewa Island.
"It is quite safe if you pick your weather."
He measured the coastal water temperature as 14.5C - starting to warm up from the 12C to 13C winter temperatures but still very chilly.
Police confirmed Mr Penn's belief that the fisherman was wearing a lifejacket. He was sure the man's family would be relieved his body had been found.
Tauranga police Senior Sergeant Glenn Saunders said the missing man's brother spoke to three people at the Sulphur Point boat ramp at about 4.30pm on Tuesday. They remembered seeing a boat matching the description anchored to a buoy.
Emergency services were alerted just before 6.30pm Tuesday night, and a search and rescue operation was launched, with the Trustpower TECT rescue helicopter called by police at 7am to assist in the search.
Police were told the fisherman had been due back at lunchtime on Tuesday.
Wednesday's search included volunteer boats, with a helicopter also conducting aerial checks of shorelines. Police investigations were continuing.