There has been a water main break on Welcome Bay Rd, near the intersection with Waitaha Rd.
Traffic is being controlled by a stop-go system. Motorists are asked to avoid the area or delay their travel if possible.
Tauranga City Council contractors are on site to assess the damage.
At this stage, it is expected to take 24 hours to repair, the council said in an emailed statement.
The water main has been turned off and no properties were impacted, a council spokeswoman confirmed.
"At this stage we are unsure what has caused the damage, but it's likely to be a broken fitting."