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The terraces were destroyed when Mount Tarawera, five kilometres to the north, erupted at 3:00 am on the June 10, 1886.
The volcano belched out hot mud, red hot boulders and immense clouds of black ash. The eruption caused approximately 153 deaths and buried the village of Te Wairoa. The lake, and several other nearby,w ere substantially altered in shape and area by the eruption.