Three people managed to escape unharmed after their yacht sank in Wellington Harbour.
Police said the 6m catamaran got into trouble near Sommes Island shortly before midday.
The three people onboard were wearing lifejackets and were picked up by another yacht.
The boat had fully sunk by the time the police maritime unit arrived.
Senior Launch Master Stu Main praised the group for wearing lifejackets.
"The fact they were all wearing lifejackets has prevented what could have been a potentially tragic situation."
The unit will be investigating the sinking.