"We thought we better call it in because there is quite a large pine plantation on the island."
Neale said when she first saw the smoke there were just "a few puffs" but as the fire grew, the smoke thickened and later you couldn't see up the coastline towards Waihi and Bowentown.
Al Gibson was at Mt Maunganui beach when he and people around him started seeing all the smoke coming from the north western side of Mauao.
"Everyone was under the impression the mount was on fire," he told the Bay of Plenty Times.
"But it must be a pretty decent sized fire on Matakana Island for the amount of smoke we can see. A lot of smoke has also drifted out east and it's stretching a long way."
A person on the island said they believed the fire was at the Panepane Point end of the island, which is closest to Mauao.
Blair Shco captured a video of the fire while driving on his jetski.
"We just noticed some funny looking clouds so we hissed over to the smoke and had a geez at what was going on. We could smell smoke.
"We just witnessed the bravery put out by the helicopter pilot and his bucket."
Matakana Island stretches from Bowentown to Mount Maunganui and is largely covered with pine trees. It had a population of 183 at the 2018 New Zealand census.