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Cones and fences cordon off a sinkhole which has formed in Manor Pl near the intersection with Princes St, in Dunedin.
At road level, the hole measured about 1.5m across.
However, the cavity underneath the road was much larger, and appeared to be up to 3m wide in some places.
A police spokeswoman said police were aware of the sinkhole and she asked people to stay out of the cordoned-off area.
A spokesperson for the Dunedin City Council was unable to be reached for comment yesterday.