More than 4,000 people were poised for evacuation today after flood defences on the River Derwent were breached two miles from Howden, near Selby.
Floodwater began pouring round the side of flood defences on the river at Wressle Clough late last night.
A spokesman for the Environment Agency said the water was being held back by a railway embankment north of Howden railway station and sandbags had been put in place.
He said at present the water was being contained, but if the embankment was breached, Howden could be under a foot of water.
The Environment Agency issued severe flood warnings to Howden and the nearby villages of Breighton, Brind, Wressle and Knedlington.
Six families have so far evacuated their homes in Howden.
Unlucky Barlby resident Alistair Hopkinson was getting ready to evacuate again after fleeing to Howden following a severe warning at his home.
He said: "It's like a fairy tale. I'm thinking this can't be real."
Meanwhile, agency spokesman David Rooke warned that a rapid drop in river levels presented a major threat to Selby and Barlby because waterlogged flood banks could collapse.
Ouse levels are still falling at Selby today where police chiefs described the situation as "stable but critical."
The river peaked at 6.1 metres above normal this morning but the flood defences held firm at Barlby, Selby and Cawood.
Severe flood warnings remained in force at Selby and Barlby, with residents not expected to return to their homes until next week.
Mr Rooke said: "We would like the river to go down very gently. The soil is so waterlogged that the banks could slump and create a serious breach in the flood defences.
"There is still 10 million cubic metres of water behind these defences."
Firefighters pumped water from the bloated Selby Dam throughout the night, dropping the levels by two inches. The pumping operation at Selby Canal was deemed a great success with water levels slowly returning to normal.
Troops worked throughout the night shoring up flood defences near Selby toll bridge and to the south bank of the River Ouse. A large pump from Holland was due to arrive in Selby tonight to help pump out water from Selby Dam. Weathermen predicted North Yorkshire will be one of the driest parts of the country this weekend after rain tonight. The area is expected to enjoy sunny spells and a few showers over the weekend, escaping torrential rain which will hit the South.
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