A water main break on Bavarde Avenue, Batemans Bay, left about 50 homes without water on Wednesday evening, March 20.
Residents said they witnessed an eruption of water and dirt from the street at around 6.50pm.
Resident Jason Cooper said his home "copped the brunt of it".
"I arrived home from work and I heard massive gush sounds, I saw the water main had blown dirt out onto the road and then literally turn Bavarde Avenue into a river," he said.
"My house copped the brunt of it.
"It washed through two neighboring houses as well," Mr Cooper said.
Mr Cooper was shattered by the water damage to his newly renovated home.
"The water has washed away $2500 of landscaping which was done last week and caused damage to the bottom of my house which has just been renovated."
The Council said the break in the water main pipe was underneath a residential driveway.
"To fix it excavation of the driveway was required," a council spokesperson said.
The Council's on-call sewer crew arrived onsite around 7.20pm and the broken water main was isolated by 7.45pm.
The Council said about 50 homes were without water until the main was fixed.
"The break was fixed and water supply returned to affected homes by 12pm that night," the spokesperson said.
In terms of damage to property, the Council said they will work towards replacing the driveway.
"Council will work with the affected resident to remediate the excavation site, at a time that suits them by removing the remainder of the driveway and replacing it like-for-like," the spokesperson said.
"Council will also seed and sod the affected grass area."
The Council has encouraged homeowners to claim the cost of water damage through their own insurance, which may then be recouped from Council's insurer if Council is liable.
"This results in a quicker process for the resident in having the damage fixed," the spokesperson said.