People in Talgai, southern Queensland are being told to evacuate as fears an irrigation dam could burst.
The news comes after a 3.5m hole was spotted in the Bolzan Quarry Dam on Dalrymple Creek on Friday.
Efforts to repair the dam were made but the hole continues to gush water, 7News reported.
Southern Downs Mayor, Tracy Dobie, estimated at least 250 homes will be affected.
"So the dam has broken at the base of the dam and the water is coming out at a considerable rate of knots right now and because the Dalrymple Creek is already in a moderate flood because we've had extensive rain, this water will come down that creek very, very quickly," Dobie said on Friday night.
But she told The Chronicle she is confident the people of Talgai will get out in time.
"I have confidence in the people who live there. This is their land, they know what happens and they will do the right thing and know where to go."
She said the land is "really flat" so the water will go out over it.
"By the time it has got a bit downstream, it will have dissipated."
According to 7News the order to evacuate was issued via social media and 5000 text messages.
An engineer is expected to inspect the damage on Saturday.