Further flooding is possible for the South Island's sodden Waitaki district, where 1000 people remain without drinking water.

Emergency and Civil Defence teams were gearing up last night for a weather beating expected to hit within hours.

Hawkes Bay coastal residents are allowed to return home after high waves prompted evacuations.

Lifeguards say they do not want the power to arrest people who ignore beach closures, despite calls for them to be given enforcement powers.

New Zealand's tsunami alert has been cancelled but people in coastal areas of the country are still advised to take caution.

Hundreds of New Zealanders who raced to beaches to watch a potentially catastrophic tsunami were 'stupid', says Civil Defence Minister John Carter.

New Zealanders weren't going to allow a 'peewee' tsunami alert to ruin the last official day of summer yesterday and many ignored warnings.

The official warning over a tsunami that threatened the entire east coast of New Zealand today has been downgraded to an advisory, but there is still a threat from ocean surges.

Tsunami warnings look to be cancelled as beach-goers who waited all day outside the water start heading home.

Civil Defence authorities have downgraded the tsunami warning for New Zealand. However, New Zealand authorities are warning that there could be surges for up to 24 hours.

Paua fishermen are diving back into the seas and surfers are out to catch waves even as tsunami warnings stay in place.

Crowds are gathering at beaches to watch the tsunami threatening New Zealand, says the coastguard.

Auckland's ferries have been cancelled and boaties warned to head for deep water as New Zealand faces a possible tsunami.

Wave activity "appears to be stabilised" at previously-reported levels, Civil Defence Emergency Management says.

The first wave has reached the Chatham Islands, after a massive 8.8 magnitude earthquake hit Chile overnight. An official tsunami alert remains in place for New Zealand's entire east coast.

A major fire near Dunedin is continuing its destructive path through a large forestry plantation.

The residents of Mangatuna village, north of Tolaga Bay, were moved out this morning as the Uawa River rose from its usual four metres to 11 metres.

A new PM defied the odds as the Govt struggled to deal with the worst recession in decades, and Labour played catch up politics.