A 200 metre area in Tokoroa has been cordoned of by police and the Fire Service, after contractors burst a gas main.
The natural gas main had been ruptured this morning in Clyde St, a fire spokesman said.
A school, a kindergarten and houses in neighbouring streets were evacuated, as emergency services waited for Vector contractors to arrive to seal the break.
"There's no immediate danger, we just need to keep people clear of it,'' he said.
Pam Anscombe, who lives about 50 metres from where the main was struck on Clyde St, said the smell of gas was almost overwhelming, even behind the cordon 200 metres away.