Storm conditions are expected to ease in NSW's Illawarra and south coast regions following days of heavy rain and floods.
But residents have been warned to remain vigilant as the flow-on effect of the storms is expected to flood homes on the south coast at high tide this morning.
"Conditions will be dangerous," SES spokesman Phil Campbell said.
Hundreds of residents were ordered to evacuate their homes at Sussex Inlet and St George's Basin last night, while eyes remain on a precarious dam that has begun eroding near Kiama.
Jerrara Dam showed signs of a failing wall yesterday morning, leaving 10 properties in serious risk and the nearby village of Minnamurra vulnerable.
Residents of two properties opted to stay and defend their home, while eight other properties were evacuated.
Minnamurra Primary School, which has 430 students, was closed as a precaution and students were evacuated.
If the dam busts, it will cause extremely dangerous flooding to areas including Mt Brandon Road, Jerrara Road and Jamberoo Road, an SES spokesman said.
