The flooding started late Tuesday afternoon in the downtown area after water began rising in the Pat's Creek culvert.
Town work crews dug a hole in a dike to allow the overflow to drain.
Mayor Tom Tarpey said that as of Wednesday morning, levels were receding.
Drivers were being told to expect some delays as cleanup work continued through the day.
Some people who could potentially have been in harm's way because of the flooding were offered accommodation at a reception centre, but it was closed due to a lack of demand.
Note to readers: This is a corrected story. An earlier version said levels were receding Thursday morning.