A homicide inquiry's underway in Kawerau after an axe attack on a man.

Police say last night just after 7.30 there was an altercation between a small group of men at a house in the town.

One ended up with a severe head injury caused by an axe and has died in Whakatane Hospital in the early hours of this morning.

A 25-year-old man has been charged with murder and will appear in the Whakatane District Court today.

Police say all the men knew each other.