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Authorities are evacuating residents from earthquake-hit Christchurch as New Zealand prime minister John Key visits the city to assess the damage.
Mr Key travelled to Christchurch with civil defence minister John Carter after the 7.0 magnitude earthquake rocked the country's second largest city early this morning.
A state of emergency has been declared in the and the Selwyn District, and the area was shaken by aftershocks.
Building facades have collapsed, cars have been crushed and many homes have suffered damage after the quake hit. Water, power and sewerage are also affected and the airport is closed.
Mr Carter says residents will be evacuated from Christchurch for their own safety, adding the dangers of falling masonry are considered serious enough to take the measure.
Police say there are some reports of lootings and they have made several arrests.
Christchurch Hospital says no-one has been killed, but two people have been seriously injured and many others have also suffered some injuries, including broken bones and cuts.
Civil defence director John Hamilton told Radio New Zealand the priority now is to get water supplies to people.
He says it could take days or even weeks to get the city's water and sewerage facilities fixed.
"I would expect us to be able to source trucks or milk tankers for example and set up distribution points at locations around the city," Mr Hamilton said.
"Then asking residents to take their water container to the distribution point to get a ration of water because there won't be a lot for everybody and allow that for drinking and cooking basically."
The New Zealand army is preparing to send troops to assist in Christchurch if required.
Christchurch mayor Bob Parker says infrastructure checks are underway and he is urging people to conserve water and stay off the roads.
"[It was] just a tremendous release of energy ... just 30 kilometres away from the centre of Christchurch," he said.
"Given that and given the scale of the earthquake, the damage which is very, very significant in terms of cracks in buildings. There will need to be a lot of inspection.
"People do need to take care and they do need to be conscious of the danger of aftershocks."
Mr Parker says people should use their common sense.
"Emergency services are flat out at the moment. The assessment is underway. Take sensible precautions but don't go out sight-seeing, check on your neighbours," he said.
"Do the things that communities do so well at times like this."
'Unbelievable'
Shocked that this happened in NZ since I didn't realise that they had a major fault line under them. It happens all over the world but it has a bigger impact when it is closer to home. Thankfully no-one died in it but it would still be horrible to live through and there is plenty of damage. Also because it is NZ the clean-up will start right away rather than it taking a long time like other countries. Hopefully Australia will send over some SES crews and money to help repair the city.