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.
Wang said 83 people had serious injuries and 131 others have light injuries.
Taiwan's Central News Agency reported the fire at the 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 boats and on stretchers to get medical treatment.
CNA reported witnesses as saying the fire spread quickly after the powder was blown into the air.
It wasn't clear if the powder was part of a performance. The cause of the fire is being investigated.
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