A ski boat burned to the waterline on Urana Aquatic Centre on Thursday afternoon, December 28.
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It is understood the NSW Rural Fire Service attended the incident just after 1pm and extinguished the blaze.
Urana sculptor Andrew Whitehead said he went to the scene when he saw fire trucks near the edge of the water.
"I got there when the boat was still sort of smouldering, the council was in the process of getting it out of the water," Mr Whitehead said.
"They got Lockhart firefighters to come out as well as the local rural fire service and there was an SES vehicle there and in the end the shire turned up, pulled it out of the water, took it away.
"There were bits of boat, fibreglass floating about, a hazard for children swimming in the area.
"A lot of locals had gathered around - you don't see this every day.
"My spider sculpture is up on the tower so I guess it was looking down on all the action."
The NSW Rural Fire Service has been contacted.
Meanwhile, in Howlong, a man was rushed to Albury hospital after he was badly burned in an explosion.
NSW police said it was understood the man was working on an air conditioning unit in a truck when chemicals ignited.
"He's been taken to hospital but there was no further incidents or police action from it," a police spokesperson said.
No more details were available.