In the early 1970s the Royal New Zealand Navy sought a replacement for its ageing SMDL patrol craft, which dated back to World War II.

These vessels would be used for fisheries patrols as well as for territorial surveillance, complimenting the existing capability provided by P-3 Orion aircraft and frigates.

Over the course of her service life, Taupo additionally took part in fleet exercises, as well as use with the Royal New Zealand Naval Volunteer Reserve.

The Lake class gained a reputation for poor performance in heavy seas, with a number of sailors injured.

In addition, all patrol craft were subject to a number of fuel shortages throughout the 70s and 80s, resulting in significant time spent laid up at Devonport Naval Base.