The fire brigade and council contractors cordoned off a section of Beaumont St this afternoon as they worked to pump water from the flooded property and locate the source of the underground leak.
Water access was cut off to several nearby properties, including Mount Aspiring College, to try and stem the flow of the leak.
By 3pm however, water continued to surge onto the street and the flooded property. A council contractor on site said they were still trying to locate the nearest valve, and could not say how long it would take to fix the problem.
Grant Lawrie, a builder who had been renovating a unit at the back of the flooded property, said the water had started rushing in at about 12:30pm.
"It happened very quickly. Pretty much bang, it was flooded."
While the unit he was working on was unaffected, he said water had risen to 5 or 6 inches inside the house at the front of the property.
Mr Lawrie said the house was currently vacant and the property owners had been notified.
In a Facebook post this afternoon, Mount Aspiring College said it would be closing for the day as the school was without water.
In a statement posted on social media shortly before 5pm, the council said contractors were working to restore water supply to "several areas of Wānaka".
"We expect to have this reopened before 5.00pm."
QLDC said water supply for Beaumont St and some neighbouring streets would remain off as work repairing the main continued.
"We acknowledge the inconvenience for those affected including the Mount Aspiring College community after the school was closed earlier this afternoon due to a lack of water."
- Regan Harris