Scottish Water and Aberdeenshire Council’s roads team are attending the scene to assess the situation.
A Scottish Water spokeswoman said: “We are repairing a six inch burst near the A97 south of Banff which has impacted a small section of the road which has now been closed.
“We are working as quickly as we can to carry out repairs and to reinstate the road. Diversions will be in place while this essential work is carried out and we apologise for any inconvenience caused.”
It is expected the stretch of road will be closed for more than 24 hours.
Burst water main closes A97 Banff to Aberchirder road, near St Mary’s Well