A SEAPLANE that crash-landed into the water in Geelong was about to pick up a Jackass star to perform a stunt

Bam Margera watched as three people were pulled from the water after a seaplane he was about to board nosedived into Corio Bay, the Geelong Advertiser reports.

Witnesses told of seeing the plane coming in to land before it ``dropped from the sky'' in front of dozens on onlookers.

The American daredevil and his entourage, known for their films including Jackass, The Movie, had been preparing a stunt on the waterfront but it was swiftly cancelled.

It had initially been believed some of Margera's entourage were in the plane before it was confirmed two passengers - a man and woman aged between 60 and 80 - had been on board with the pilot.

Geelong police Inspector Gary Thompson said a passing boat pulled the trio from the water before they were treated by paramedics and taken to Geelong hospital where they were later reported to be in a stable condition.

Margera was among those who rushed to the scene fearing some of his crew may had been on the plane.

"We saw the plane crash and we saw the plane upside down,'' he said.

"For 10 long minutes we thought it was them.''

SES volunteer Scott Clark said when crews arrived the plane was on its roof about 50 metres from the end of Cunningham Pier.

He said it was a chaotic scene when crews arrived.

"The pilot of the sea plane, along with its two passengers, were rescued by a passing boat, and brought to shore at the Western Beach pontoon,'' Mr Clark said.

"SES rescue crews assisted ambulance crews to recover the two passengers from the plane onto spinal boards, and out of the boat, before being loaded into waiting ambulances.

"An SES rescue boat team from Geelong also responded to the incident.''

The Water Police are investigating the incident, with plans being put in place to recover the sunken plane.

Read more at the Geelong Advertiser