Heavy fuel oil from the container ship Rena is washing ashore at Kulim Park this morning, moving the environmental damage into Tauranga suburbs.

The oil entered Tauranga Harbour this morning and is reported at Sulphur Point, near the marina, and along the foreshore at Matua.

Oil found in Kulim Park. Photo: Cody Stevens.

Lynn Morrison from the four-wheel-drive club says he found oil at Kulim Park shortly after 11am.

'I've just returned home from over at the Mount, and I inspected along through Kulim Park and oil has arrived down here by the Tauranga Yacht Club,” says Lynn.

'I don't think they expected it to come in through the entrance at the stage, but it's here and it's in big dollops.”

He's called the authorities and the Tauranga City Council.

Sulphur Point Marina manager Bob Ellis says they are keeping an eye on the situation and have a boom on standby should the marina appear threatened by the oil.

Tauranga Yacht and Powerboat Club's Wednesday night racing is cancelled because of the oil in the harbour.

"One of our major concerns for the keelers was the risk of the oil being sucked into the engine and causing damage," says club manager Christine Headey.

"We will reassess the situation for future sailing as things develop."

The bar at the club will be open, but the kitchen will be closed.

People are being asked to keep away from Kulim Park. Photo: Cody Stevens.