"It just coats the property. There's a fine dust, you can see it. It gets on your clothes, you're breathing it, it's getting into your body.
"It's just there, in your guttering, in your gardens."
As well as the inconvenience - "my vehicle was totally coated" - Mr Smith said he was concerned about the health implications for Ngongotaha residents. "You don't really know what's in that product ... you don't know what's in those chips," he said.
Mr Smith called the Bay of Plenty Regional Council's pollution hotline yesterday to report the discharge, something he said he'd done "heaps" of times before.
"I know things that are man made are going to break down," Mr Smith said.
"But that doesn't take away that we as residents and ratepayers have to live with one day waking up to crap all around us."
Mr Smith said he didn't think the mill belonged in the area and it should move that particular process to another site.
Regional council senior pollution prevention officer John Holst said the council received a complaint around 8am and went out to investigate.
The sawmill was called and it had immediately shut down the culprit machine, he said.
Mr Holst said the mix of soot and wood waste was being discharged for a "very short period of time".
He said under the council's rules the mill was not allowed to discharge waste beyond its own boundaries.
Yesterday's apparent breach was being investigated, with possible outcomes ranging from a warning through to prosecution, he said.
Mamaku Sawmilling financial controller Rob Archibald said the incident was a one-off operational problem.
"A blockage created an overflow of some wood waste and it went outside of our boundaries," he said.
He said the problem was quickly rectified before it could get any worse.