All shops and services including petrol station were shut this morning, with the exception of the main supermarkets Fresh Choice and GP surgery, both operating on diesel generators.
Fresh Choice co-owner Nat Cullen said "as long as we can keep diesel going we will stay open, we are doing everything we can for the community".
Rain Collins, who was buying groceries, said his boss had advised him to get to the supermarket before starting work "in case it was cleared out".
The ability for people to phone out was extremely patchy and people in rural areas reliant on electricity to pump their water from boreholes and tanks had no water supply.
Nearly all cafes were closed in town, but the local dairy was still cooking hot meals on gas and able to accept cash.
"We are trying our best for the community and anyone here who is hungry," said dairy owner Amanda Gao, who had dished up around 100 meals last night.
They were able to offer a limited menu and was accepting cash.
Resident Martin Sliva said it was "wake-up call" for the 3000-strong community and tourists, many of which were stuck in Airbnbs without the fuel to leave.
"For the longest time we have been promised a giant earthquake. It's ridiculous that so few businesses seem prepared for an event like this, or worse."
Mr Sliva said he was thankful he was able to cook for himself on a burner with a wetback.
Senior Constable Kris Dale said the main stressors were lack of power and fuel and "Airbnbs who are struggling with guests who don't know what is going on, without running water or hot water".
"However, Te Anau is old school New Zealand so neighbours are looking after each other. People are awesome here."
They were caring for each other "because that is what Southlanders do".
Brian Conlon from Ireland said he was having to stay on in Te Anau due to a lack of fuel to leave and was hoping to find a hostel bed.
"Everyone is in the same boat. Everyone is wandering around looking like zombies, but we are all in the one place so it’s fine, it is what it is."
Both schools in town were shut.
High school student Riley Young, who lives on a farm, said everyone was "relatively upbeat" but one concern was maintaining electric fencing.
He was also regularly checking on his granddad down the road who was doing "just fine".
Grace, from Surrey in the United Kingdom, said she was relieved the store was open as she and her partner had "panicked" this morning as they had no food left.
They were planning to drive to Dunedin but were concerned they might not make it due to lack of fuel.
The lake in Te Anau was so high that large trees were submerged, despite the hydroelectric control gate at the bottom of the lake that flows into the Waiau River being open.
