Scientists using underwater robots have discovered remnants of the Pink Terraces on the floor of Lake Rotomahana, near Rotorua.
The terraces, once described as the eighth wonder of the natural world, were buried in the eruption of Mt Tarawera in 1886.
They were rediscovered this week during a joint New Zealand and American mission to map the lake floor and investigate geothermal activity at Lake Rotomahana.
Project leader Cornel de Ronde, of GNS Science, said his team was elated at the discovery.
He is "certain" they have found the remains of the terraces.