The incident happened on Saturday night, when people living in the remote Puno region reported seeing a fireball in the sky that was falling to Earth, and then when it landed it created a 30m (98ft) wide and 6m (20ft) deep crater, which is said to be emitting noxious gases.
Some scientists have questioned whether it was actually a meteorite or some other object from space that fell, and a team has been sent to investigate the area and collect samples for analysis.
An engineer from the Peruvian Nuclear Energy Institute is reported to have claimed that no radiation had been discovered coming from the crater and he was sure that whatever the object was it isn’t a satellite.
Peruvian villager Romulo Quispe explained that there were concerns about the safety of the drinking water and he said: "This is the water we use for the animals, and for us, for everyone, and it looks like it is contaminated."
Geologists want the authorities to ask people in Peru to stop visiting the crash site until a full investigation has been undertaken.
