Situation resolved 7am, Friday 16th - Thank you to the emergency services
The Devon and Cornwall force said teams were at Exmouth Marina "after a suspected unexploded ordnance was dredged out of the water".
Officers had set up a 100m cordon and properties were being evacuated. A bomb disposal team had been alerted.
Exmouth resident John Cameron said police had been knocking on doors within the cordon, advising people to evacuate their properties.
Before the evacuation, he could see the dredger in the marina, with a large object about 3 or 4ft in length and 2ft in diameter onboard the vessel.
Devon and Cornwall Police said LED Exmouth Leisure Centre, on Imperial Road, was available for anyone being displaced who needed somewhere to go.
We know a 400m cordon is in place in Exmouth after an unexploded wartime device was found during routine dredging
An East Devon District Council (EDDC) FAQ page says 5,000 people and 2,000 properties are thought to be affected by the discovery on Wednesday.
It says military advice is clear and those living within 400m of the device "need to evacuate".
A bomb disposal team from the Midlands has been deployed to Exmouth, according to Devon and Somerset Fire and Rescue Service, and they arrived in the seaside Devon town at about 19:25 GMT on Wednesday.
