Council said Thames St was closed and properties were being evacuated.
Four fire trucks, HAZMAT unit and a support vehicle are currently in attendance.
Hawke's Bay Regional Council urged residents to stay out of the water at Ahuriri Estuary until further notice.
"We've learned of a spill of 1000 litres of hydrochloric acid in the Thames St area, entering the stormwater system and into the Tyne St drain, which flows into Ahuriri Estuary," a spokeswoman said.