Heavy rain falling across the Illawarra has caused major problems on the roads and resulted in a number of evacuations.
The Bureau of Meteorology issued a severe weather warning for the Illawarra overnight while a similar warning for the South Coast was lifted.
The SES says five homes in the Shoalhaven were inundated with some residents forced to evacuate the area on Tuesday night.
A dam failure evacuation warning was issued Wednesday morning for areas downstream of the Jerrara Dam west of Kiama.
The Illawarra South Coast SES responded to over 400 calls for assistance by Wednesday morning with 50 to 60 jobs outstanding.
SES Incident Controller Greg Murphy says a number of flood rescues were carried out in the southern highlands on Tuesday afternoon.
"People in floodwaters trapped or isolated," he said.
"Often it's a case of getting people across floodwater back to their homes, properties and families.
"We also had some incidents where animals, mainly horses were in floodwaters."
Bolong Road linking Gerringong to Nowra and the Illawarra Highway at Albion Park rail were closed on Wednesday morning due to the heavy rain with other local roads also subject to flooding.
© ABC 2013
16:50 EDT A spectacular storm hit parts of South East Queensland in the closing hours of voting in the state election.