Popular restaurant Milanos On The Lake, at Pelican in the NSW Hunter Region, has partially collapsed into Lake Macquarie.
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The incident happened about 9.45am on Monday.
Two people were inside but escaped uninjured.
NSW Fire & Rescue spokesman Ian Krimmer said it appeared the building's piers had been undermined.
"We have isolated the power and gas and are in the process of preventing oil going into the lake," Mr Krimmer said.
Engineers are assessing the building's stability.
Jim Sommers, who ran boating company Main Sale Solutions on the ground floor, said he had left the marina only 20 minutes before the collapse.
Mr Sommers said Crown Lands had taken over the running of the marina in December.
He said an inspection was done on the marina in December.
"Some of the pylons were being held by ratchet straps," Mr Sommers said.
