A semi-submerged boat is making its way back to shore after it started taking on water about 5km out to sea near Kaikoura.
Tasman Police Acting Senior Sergeant Julian Lewis said there were two people on board - including one 64-year-old man - who were both wearing life-jackets.
The boat started taking on water out to sea from Ward, north of Kaikoura, and the stern of the boat was now underwater.
It is not yet known why the boat started to sink.
The boaties were managing to keep the water at bay and were slowly heading for shore, Mr Lewis said.