Two teenage boys sparked a seven-hour search when they failed to inform police they were safe and well after their dinghy capsized near Little Waihi.

Western Bay of Plenty Coastguard patrols and police search and rescue launched the search on Saturday night after a member of the public informed police of a capsized dinghy 1.5km off Karewa Parade.

The three-metre aluminium dinghy was found about 1.5km off Karewa Parade on Saturday night. Photo: supplied.

Tauranga Coastguard's TECT Rescue and the Maketu Coastguard's Eastpak rescue searched for seven hours for the occupants of the three metre Parker Craft aluminium dinghy in case they were in trouble.

The marine based search was completed in conjunction with a shore based search using a 4x4 and quad bike.

Tauranga senior sergeant Craig Madden says the two teenage boys were reported as safe and sound to police by the owner of the dinghy around 10.30am on Sunday.

The owner, who lives in Little Waihi told police his 15-year-old son and 16-year-old nephew were using the dinghy in the Pukehina Estuary on Friday night when it capsized.

'Both boys swam back to shore but were unable to see the dinghy.

'They were wearing lifejackets when the boat capsized this will have assisted them in making it back to shore safely,” says Craig.

On Saturday, Craig says the owner and both boys returned to the estuary to search for the dinghy but were unable to find it believing it had sunk.

A staff member at Bledisloe Holiday Park in Little Waihi Beach says the family was staying at the motorcamp.

Maketu Coastguard Shane Beech says a Little Waihi resident had heard search and rescue crews were searching for the possible missing boaties.

'That's when they [the resident] made contact with coastguard just to advise that they believed they knew who was in the boat and we passed that information on.”

He says the boat would have drifted about 20km from the Pukehina Estuary to Karewa Parade.

Although happy to see the boys were safe and well, Craig says if the boys had reported the event the search would not have been required.

'It is recommended that recreational boaties report any maritime event, to the local harbour master or Maritime NZ.”