Civil Defence is assessing specialist advice after a series of earthquakes put Waihi Village, on the southern shores of Lake Taupo, at risk of a major landslide.
Fifty residents voluntarily left their homes after several earthquakes and heavy rain at the weekend increased the risk of a landslide in the Hipaua thermal area above the village.
Civil Defence said yesterday that the township could never be considered 100per cent safe until the landslide happened.
An emergency has been declared until noon tomorrow, the village is closed and an exclusion zone of about 600m extends into Waihi Bay.
Residents who had been staying in motels were being moved to a marae and backpackers hostel.