The coastal town of Agnes Water in central Queensland has been isolated by a large sinkhole that has opened up on a flood-damaged road.
Gladstone Mayor Gail Sellers says the only road leading to the town collapsed earlier this morning.
It means about 2,000 local residents and tourists are stuck there until a detour is built.
Councillor Sellers says that could happen as early as tomorrow.
"We have been ferrying children across from the buses from one side of the culvert to another quite safely," she said.
"We're building a gravel side track at the moment to allow traffic through and we're going to try and work through the night to make this happen.
"Hopefully it'll be open tomorrow morning."
© ABC 2013
16:44 EDT Tasmania is the only state yet to sign up for the federal Farm Finance package.