Police will be tying up loose ends in the Coromandel today, after the discovery of a body that's believed to be that of missing teenager Luke Cochrane.

The 19-year-old went missing on Saturday night from a function at Whitianga Fire Station.

A body was found in a waterway outside a property on Aquila Drive last night, near where his hat had been spotted a little earlier.

The property is a few hundred metres away from the fire station.

NZME reporter Belinda Feek said the family's loss is tempered to a small degree by the knowledge some people are never found.

She said now that police know where Luke went missing, it's likely they'll centre more of their enquiries around that area.

People may not know they may be holding clues about the case - much like the owner of the property who found the hat and didn't alert police, said Feek.

The investigation's now in the hands of the coroner.

On Aquila Dr, there's a somber mood but residents are just pleased for the Cochrane family as they have their beloved family member back.

The owner of the house where Cochrane's hat was found said she believed that it was initially found on the ground near the water's edge.

There was heavy rain in the town on Saturday night - more than 200mm fell - causing the waterway tide to rise so much that it was lapping over the concrete wall which borders all properties.

The resident said someone saw the hat and put it on a fence which borders their neighbour's holiday home property.

As for why Cochrane ended up in Aquila Dr - and not near his rented Albert St bach - would likely come out in the coroner's inquest, however some locals have suggested he may have got disorientated when leaving the fire station and headed off in the wrong direction.