The State Emergency Service (SES) says the village of Towang near Goulburn may remain isolated for a further 24 hours, after torrential rain drenched the region yesterday.
Southern Tablelands Regional Controller Tony Casey says both the Mulwaree and Wollondilly rivers appear to have peaked and crews are out in Goulburn at the moment assessing the situation.
Mr Casey says he expects an evacuation warning issued yesterday, advising residents to prepare to leave their homes, will be lifted shortly.
He says many roads remain affected by water.
"We have a small community of around 300 residents at Towrang," he said.
"They have a low level bridge which is cut.
"At this stage there's probably two metres of water over that low level crossing and we can expect they'll have another 24 hours, or slightly less, but maybe 24 hours period of isolation before council clear that bridge and re-open it for traffic."
SES crews are this morning assessing the damage caused by flooding around Goulburn yesterday.
Around 130 millimetres of rain was recorded in the Goulburn area from Monday night to this morning, but conditions have eased considerably.
Mr Casey says the situation has almost resolved itself.
"Both rivers that run through Goulburn, the Wollondilly and the Mulwaree appear to have peaked late yesterday, and we've got reconnaissance teams out on the ground at the moment just confirming where the rivers are at this stage," he said.
"We expect to be able to give the all clear, to Goulburn residents subject to an evacuation warning, early this morning."
© ABC 2013
15:20 EST Heavy rain in the past few days led the Rural Fire Service to reassess plans to bring forward the bushfire danger period in the Hunter region to September the first.