A rainbow sheen spotted on a lagoon near Carlyle Drive in Bayville on Tuesday was believed to have been caused by hydraulic fluid washed into the lagoon by rainwater through storm drains, according to the police.

Police say a search of the area determined that the fluid spread between Bowsprit Drive and Allen Road.

The Berkeley Township Hazmat Team, the New Jersey State Police Marine Unit, and the Department of Environmental Protection are investigating.

Officials say the fluid does not appear to be hazardous.