Swimmers at Tathra Beach were evacuated after a shark was spotted several metres from shore earlier on Monday afternoon.
The shark was spotted around 3.06pm by Surf Lifesaving's drone patrol surveillance which was being operated by a Surf Life Saving UAV pilot.
Tathra resident Darryl Butler was on the phone for an interview with Australian Community Media, when he heard the siren sound out and saw large crowds swimming to shore.
"What was spectacular to me was the shape of all these people headed in one direction, then they all grouped on shore, looking hesitantly back on the water," he said.
Mr Butler had been perched at the clifftop overlooking the beach when he heard the siren, and being at that vantage point, he had a great view of the scene.
"They were moving quick and some had swum out really far, so it was impressive to see everyone out within a minute," he said.
Mr Butler said he had been impressed at the professional and smooth execution of the evacuation by the Surf Lifesavers patrolling Tathra Beach that day.
"I've always been proud of the vigilance of the volunteers and Life Savers at Tathra but more so now after seeing the way they got into action on this busy and chaotic day," he said.
Mr Butler said after 25 minutes the Life Savers announced that people could start getting back in the water again and he saw people gradually getting back in.
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Looking back on the evacuation Mr Butler said it was lucky that the Surf Life Saving Club had spotted the shark so quickly and said it was a great example of the positive impacts of using drone surveillance at beaches.
"It performed a task that you just can't do from the ground level, I mean look at what just happened, this technology is helping save lives," he said.