Southland had 60ml of rain over the past few days and Fiordland also received a downpour, which filled lakes that funnelled into the Waiau River, causing water to gush into the river mouth next to the residents’ homes.
Homeowners in Bluecliffs Beach Rd said water was licking mere metres from structures, and there were genuine fears their homes were going to be swept away.
Local resident Chris Wood said he and other residents were going to lose their homes.
"Fifteen years ago, we warned them. They did nothing and it’s come to this."
In August last year, the Otago Daily Times reported the small hamlet at the mouth of the Waiau River at Te Waewae Bay — numbering 17 houses — had ongoing erosion problems as the spit which protected it was fading away.
Part of a road had already washed into the sea, and residents feared their homes were next.
He believed those issues were finally coming to a head, Mr Wood said.
The sand bar that protected the homes had collapsed and the heavy rain in the region had caused the river to rise over 2m, he said.
"If not now, then soon. We have heavy rainfall forecasted for the coming days in Fiordland and if the lakes overflow there, the water will be a raging torrent down here."
The area had had issues with erosion over the years, and residents were unaware yet how much of the land had been lost to the latest gush of water.
Southland District Mayor Rob Scott said the district council had direct communication with the residents in Bluecliffs Beach Rd and they had "not yet" been evacuated.
"This is not quite a dire state yet, but it is an escalated situation that we are working on, we’re working through the threats — we are keeping a very close watch.
"We are closely monitoring it. It’s a changing situation and an evolving situation — we’ve got all eyes on it".
The river was going down and had already reached its peak earlier yesterday, and "in terms of that, it is getting better", Mr Scott said.
"The sandbar changes a lot and there is an area where it used to be where it is currently not, but it is a forever moving piece, and there has been a lot of talk about moving the river mouth to allow it to rebuild."
In August, Mr Scott, representatives from Environment Southland and Meridian Energy met residents in nearby Tuatapere to discuss the erosion in the area and the future of the hamlet.
Mr Wood said one of the solutions proposed was to relocate the river mouth, but there had been "absolutely no progress".
"We have no insurance, nothing that covers our homes from erosion — it has been like banging my head against a brick wall."