Project Loon began with a pilot test in June 2013, when 30 balloons were launched from New Zealand's South Island and beamed internet to a small group of pilot testers.
The pilot test has since expanded to include a greater number of people over a wider area. The goal is to establish a ring of uninterrupted connectivity at latitudes in the Southern Hemisphere, so that pilot testers in these latitudes can receive continuous service via balloon-powered internet.
Ms Johnson said she and her children, who are home-schooled, could see the balloon for two hours.
"It's very exciting. Everything went on hold. We got up and watched the International Space Station at 5am, then we saw this and then a ring around the sun. It's neat to have the community look up to the sky. We miss out on seeing eclipses due to bad weather being in the wrong hemisphere, so this was neat."
Comments on the Rotorua Daily Post Facebook page had readers wondering if it was a weather balloon, Superman or something more Biblical.
"Maybe it's Jesus' sign to us saying he's still watching us or he's getting reborn," wrote one.
"Santa, he's early," wrote another.
