Three buildings are on fire on Firth St, Matamata.
Fire and Emergency Northern district shift manager Paul Raddin says about 12 fire engines and 50 firefighters from Matamata and surrounding districts are fighting the blaze.
A police spokeswoman says police were called at 8.50 to the "large" fire.
A witness says SH27 is closed by the Matamata Fire - which he says is centred on a place called Vikings Kayaks.