Residents from the town of Nathalia are being evacuated as floodwaters are breaching both its main levees.
According to SES officials, water seeped under the southern barrier. This was followed by a breach in the town’s northern levee.
However, the northern levee has been plugged and emergency crews laid sandbags to reinforce both barriers.
Emergency crews noticed water leaking through the main levee at around 3am. Floodwaters seemed to touch the peak at about 4 AM (AEDT) this morning.
At least two homes were inundated with water overnight. However, no one had required rescuing.
According to one SES official, the barrier placed to stop water has not failed. But water from the creek is getting in underneath and bubbling up through the road.
About 700 homes are now under threat in this northern Victorian town.