Piha residents found an unpleasant surprise this morning after 28 barrels - some filled with used oil - had been dumped at two car parks on Piha Rd.
Some of the barrels had tipped over and spilt the oil on the ground.
A police spokeswoman said that police had contained the spill but it could have been dangerous to locals.
"The spill has now been contained but could have run into the upper Nihotupu Reservoir which had the potential to contaminate the water supply," she said.