A fire on a music stage spread into a crowd of spectators at a party at a Taiwan water park, injuring more than 200 people.

An accidental explosion of an unknown powder set off the fire near the stage in front of about 1,000 spectators, said Wang Wei-sheng, a liaison with the New Taipei City fire department command centre.

Eighty-three people suffered serious injuries and 131 others have light injuries, Wang said.

The fire at Formosa Water Park in New Taipei City near the island's capital was quickly brought under control.

Video showed rescue workers and bystanders carrying burned and injured people on their backs, in inflatable boats and on stretchers to get medical treatment.

The fire spread quickly after the coloured powder was blown into the air.

It was not clear if the powder was part of a performance.