Emergency services were alerted to a family of four in the water after their boat sank in Lake Benmore just after 1pm, near the Sailor's Cutting camping ground.
Constable Craig Bennett, of Kurow, said the pump, engine and auxiliary motor of the 8m pleasure craft all failed and it was forced sideways in ''strong winds and very large waves''.
Water breached the side of the vessel, and as ''it started to roll over, the four family members got into the water''.
The vessel rolled around 200m from shore, but fortunately for the Papakaio-based adults and two children aged 8 and 12, they could reach a sand bar and ''swim and walk their way to land''.
All four were wearing life jackets and ''it shows how valuable life jackets are for every boat user, no matter the size of the vessel''.
They also did the right thing by staying together and calling emergency services from their cellphone, which was kept in a waterproof container, to update their position.
As a result of that call a rescue helicopter was stood down, he said.
Despite being cold and wet, family members were otherwise unhurt, Const Bennett said.
''They have headed back home with a story to tell.''
The boat was insured and it was likely to be salvaged when weather conditions approved.
Const Bennett said the vessel was well-equipped to handle the conditions, and while it was only the second time the family had tried the vessel, it had been used in worse conditions near Picton.
''They have had a lot of bad luck ...but the worst that came out of it is that they are cold and a little bit embarrassed.''
