One body has been found, and another person has been rescued, after a boat was overturned in South Otago

A search was launched shortly before noon, after police received reports of a capsized vessel near Jacks Bay, at about 10:40am.

Police say the body found on a beach, is believed to be one of the people on board.

Another man was spotted on rocks nearby, and has been airlifted to Dunedin Hospital in moderate condition.

Surat Bay Lodge co-owner Ester Johnson, says she know's both men well - and they had been celebrating a 60th birthday.