Power has been restored to Middlemarch Sunday evening.
It had been out since about 2.30 this afternoon after a lightning strike cut power to the town, with residents asked not to flush their toilets until further notice.
The Dunedin City Council said the town’s sewerage system would not be able to operate as efficiently as possible and with rain continuing to fall in the area there was a risk that wastewater flooding would occur.
While residents are allowed to flush again, they are being advised not to drink water from bores unless they treat the water with a filter or similar, as it is likely contaminated. A water tanker is available at the Strath Taieri Community Hall.
Volunteers in Dunedin have been stood down from sandbagging stations as the rain in the city eases
Dunedin's severe thunderstorm warning was been lifted, but a watch remains in place throughout Otago.
The warning was issued shortly after 4.30pm and rescinded about 5.15pm.
Over 1600 lightening strikes were counted around the country in a two hour period this afternoon, with inland areas near Dunedin and parts of the central North Island copping the brunt.
MetService warned the thunderstorms could bring flash flooding near streams, gullies and urban areas, and make driving conditions dangerous.Meanwhile, festival-goers at Whare Flat have been led out via a back road after being stranded at the site over the weekend.
Organisers of the Folk Festival posted to their Facebook page about 5.15pm that Fulton Hogan had "led a parade of soggy campers" through a back road, getting out "just moments before the next downpour."
Many festival-goers were forced to leave vehicles and belongings behind and it is likely to be one or two days until organisers are granted access to the site to retrieve anything.
Despite the difficulties, organisers praised the camaraderie and high spirits of the stranded group for "making a tricky situation a terrific one".
Meanwhile, Middlemarch residents say they are concerned about yesterday's flooding.
Strath-Taieri Community Board member Leaann McLew said the flooding pattern on Saturday was different from previous occasions, and a great deal of water had arrived quickly, including from March Creek, she said.
There was "a need to investigate" some matters involving the flooding, she said.
Flooding, which had affected several homes and some commercial premises, had since receded.
As a rural nurse, Ms McLew appreciated the health dimension to the flooding issues.
Board chairman Barry Williams was also concerned that about 40mm of further rain had been forecast for later today.
Another board member, Blair Dale, said he was also concerned about the flooding, which was still affecting the township.
A nearby resident said he drove to Middlemarch yesterday and tried to help people affected by the heavy rain.
