He said it was also too early to establish what had happened but police called in forensic experts and launched a rescue boat to examine the scene while the body remained in the lake.
The first witness said the body was several metres offshore which had made it difficult initially for her to recognise what it was.
"I asked (the elderly couple) what do you think? I actually wasn't sure what I was looking at."
The elderly man said he thought it looked suspicious.
Two boys fishing at the spot said they saw the body but didn't know anything about it.
Mr McAlley said police would need to identify the person, figure out how they ended up in the lake and establish a cause of death before they could determine if it was suspicious.
The perimeter of Lake Rotoroa is a popular walking path for young and old.
A bride and groom celebrating their wedding with a ceremony at the spot had planned photographs down the section of boardwalk which had been cordoned off and had to make do with the other side of the Hamilton Yacht Club.
The bride's father, who declined to be named, said he wouldn't alert the happy couple to the grisly find.