Central Dunedin had a temporary new fountain with roadworks accidentally opening a water main, spraying a pressurised 'geyser' many metres into the air.
Dunedin City Council said the water main was damaged during upgrade work in the George Street retail quarter this afternoon.
Contractors scrambled to bring it under control and it was shut off early this evening.
Workers at the site also took precautions to try to prevent the water entering nearby businesses, a council spokesperson said.
The exact cause of the damage to the pipe was not yet known, but would be investigated.
Last month, a contractor working on the same street upgrade suffered burns after a live electrical cable was cut.