The earthen dam was intact Friday morning, the weather service said in an update, but water has been moving over it and into Blackwater Creek about 2 miles southwest of downtown Lynchburg.
Some of Lynchburg is already flooded.
Lynchburg has been hammered by heavy rain over the past few days, which has raised water levels inside the dam.
More than 150 people had been removed from the possible path of dam waters, Luann Hunt, a spokesperson for the city of Lynchburg, told ABC News. Since then, the city has continued to analyze the dam to determine how to move forward.
Alisson gets first Liverpool game, forward three re-united v Napoli
Liverpool face Napoli on Saturday as they wind down their pre-season, with Alisson set to make his debut. He obviously has a real presence, he's smart, he's very nice and it's good to have him around.
Almost a hundred people have been evacuated from their homes in Lynchburg, Va., after an intense storm amid concerns that an aging dam might fail and unleash unsafe floodwaters.
The west-central Virginia city near the Blue Ridge Mountains has received plenty of runoff from recent rains, with 4 to 6 inches falling in the area Thursday evening and filling College Lake beyond its capacity.
Local fire and police sent boats to rescue people to area shelters, including E.C.Glass High School and Sandusky Middle School. In all, some 26 million people live where a flash flood watch is in effect.
College Lake is a manmade lake, built in the early 1930s by the Virginia Department of Highways as part of the development of U.S. Highway 460, west of Lynchburg.
Courtois eyes a return to Madrid for family reasons
Chelsea were reportedly at risk of losing many of their prominent players after an underwhelming fifth-placed finish in the Premier League last season.
The weather service said Friday that water levels have decreased but the "the threat of for dam failure continues". The original surface area of the lake was reported to be 44 acres and has been reduced to 19 acres due to sedimentation.
But there was good news on Friday as engineers examined the dam and said it survived in good shape. The road, now US 221, needed expansion and improvement.
The National Weather Service in Blacksburg has issued a Flash Flood Warning for The Blackwater Creek below College Lake Dam in Lynchburg until 3:15 am.
Swedish crown jewels stolen by thieves who escaped on a speedboat
Police chief spokesman Thomas Agnevik told Swedish TV the lost objects were " invaluable objects of national interest ". They were stolen from the Cathedral of Strangnas, a 900-year-old church around 80 miles from the capital, Stockholm .