UPDATED 7.24pm: It's been revealed the plane which crashed into Lake Taupo this afternoon was operated by Skydive Taupo.

It could be some time before the plane is removed from the lake.

Three investigators from the Transport Accident Investigation Commission are on their way to the location of the crash now.

Spokesman Peter Northcote says their first priority is photographing the plane, before it's salvaged.

"We want to make sure we have as complete a picture as possible of the state of the aircraft before it will be ready for a salvage."

Peter Northcote says the investigation will be very thorough, and could take up to 18 months.

Onboard were the pilot, as well as six crew and six passengers who were to tandem skydive.

Taupo's mayor has met with the management of Skydive Taupo.

Mayor David Trewavas says he understands there was a mix of international and domestic participants on board.

Police say it ran into trouble during its climb to altitude, and all those onboard parachuted to the ground.

Witnesses saw those on board the plane bail out and parachute into the lake around 12.15pm.

Police say all passengers have been checked by St John personnel, with no injuries reported at this stage.

AUDIO: Dylan Moran talks to Sue from the Waitahanui Lodge about the crash

AUDIO: Josh White talks to Rotorua Daily Post reporter Laurilee McMichael about the crash

Civil Aviation Authority spokesman Mike Richards said it was miraculous no one was killed.

Mr Richards said more details would be released later as it was "really, really early days", but a safety investigator was already reviewing the incident.

Holidaymakers help rescue parachutists

Holidaymakers rushed to the rescue of a plane load of parachutists when their plane ran into trouble over Lake Taupo this afternoon.

A witness at the Waitahanui Lodge says she heard a loud popping noise as the plane was climbing.

Shortly after, around six people bailed out of the plane over the lake, and the pilot joined them after guiding the plane away from the land.

Sue says they were then plucked out of the water.

"Holidaymakers in their boats went straight to the scene and tried to rescue the parachuters."

Witnesses to a plane crash in Lake Taupo have reported hearing an explosion after it was ditched into the water.

Sue watched the drama from Waitahanui Lodge and says it was dramatic.

"A lot of people saw the flash in the lake. It was huge and I'm pretty sure there was an explosion.

"It could've just been the plane hitting the water, but it sounded to me like an explosion straight after."

Robbie Graham of the Wildwood Gallery saw around 12 skydivers leaping towards the lake.

"I could see one of them might've made it to some land, but the rest of them looked like they were going to go straight into the lake."

Rotorua Daily Post reporter Laurilee McMichael is on the shore, and says the pilot leapt out at the very last moment.

"The skydivers were able to manipulate their parachutes so they all landed safely on shore, and I understand the pilot landed in a rather large blackberry clump."

POLICE STATEMENT:

Thirteen people on board a light aircraft which has crashed into Lake Taupo are all safe and sound.

Police received reports of the crash at approximately 12.15 this afternoon.

All those on board are now shore and being checked out by ambulance, but it is believed at this stage that there are no injuries.

CAA has been notified and police will assist as required with any air investigation.

No further information is available at this stage.