Flooding of the Ngongotahā stream is now unlikely as water levels and rain ease, the Bay of Plenty Regional Council said at 8.30pm.
It said in a Facebook update it would continue monitoring the situation.
Residents near the stream were earlier urged by the Rotorua Lakes Council to prepare to evacuate in case of flooding.
In a statement on its Facebook page on Monday evening, the council said it, along with the Bay of Plenty Regional Council, is closely monitoring stream levels after 135mm of rainfall in the last 12 hours.
"We are not expecting any evacuations to be necessary at this stage, but will continue to carefully monitor the situation, and it would be sensible for residents to prepare to evacuate just in case."
It comes after a day of heavy rain in the region, resulting in downed trees, blocked drains, flooded homes and streets, and a stranded bus.
MetService said Rotorua recieved 21mm of rain between 2pm and 3pm.
Rotorua Fire and Emergency senior station officer Gary Balment said crews were flat out all afternoon in Rotorua and Ngongotahā. The worst-hit was a property on Bell Rd after a lot of water entered the property.
He said extra callout crews had to be called to help out.
"I can't tell you how many jobs we went to ... There was just so much water in such a short timeframe, it just overwhelmed the drains."
A Bell Rd resident said the water on his driveway was up to his knees and his wife's car was submerged under the deluge.
Water was in the back bedroom, the laundry, the garage and an outside bar area, he said.
He said four stormwater drains had converged into one and caused the mayhem. ''I'm fortunate that I have insurance, the last time it flooded my claim was $25,000.''
One woman, who did not want to be named, was helping her grandfather protect his Bell Rd home from the flooding.
Griffin said he understood the bus went through flooding and took on some water, but then came to a complete stop.
The bus needed to be towed out of the water and minivans came to collect the children. Griffin said everyone was safe.
Otonga Primary School principal Gareth Cunliffe said it was mayhem around the school at pick-up time as every parent tried to get close to the school to pick up their children.
He said they had five staff members manning the gates to try and make sure everyone made it out safely.
"There was a strong flow of water, I've never seen it so bad."
Pukehangi Rd resident Steve Wright said his street was "underwater" and it had reached his fenceline.
Wright said it was lucky the rain stopped when it did and said he would have needed to sandbag his property if it had not.
Cars had been driving fast through the flooding and up the grass verge by the side of his house. When the road had cleared of water, mud had been left all over, leaving a "hell of a mess".
The Four Square Fordlands store manager, who did not want to be named, said the flooding happened very quickly when it began to rain hard in the afternoon.
When asked if she thought the rain would stop soon, she said, "I hope so. If not, I'll swim."
She had seen someone walking on the flooded road and the water was up to his knees.
Cars could be seen across the city making their way through flooded streets. A motorist reported not being able to get home due to flooding on Hodgkins St at the intersection with Hamon Pl.
Rotorua Lakes Council urged people to travel only if necessary after trees were down and surface flooding was being reported in various parts of the Rotorua district.
A council spokesperson said the number of weather-related calls to Rotorua Lakes Council and its contractors has increased after a reasonably quiet morning.
Crews had worked to clear blocked cesspits and drains, clear downed trees and manage surface flooding, the spokesperson said.
MetService meteorologist Luis Fernandes said the heavy rainfall was forecast to end by yesterday evening and turn more to showers, possibly thunderstorms.
For the rest of the week, he said there would be showers in the morning on Tuesday and Wednesday, with rain expected on Thursday afternoon as well.
There could be some heavy rain but there were no watches or warnings in the region yet. The weekend was looking clearer, dryer and cooler.
"It is quite an active week, there is a lot going on, with several systems moving across the country.
"The tap will be on and off, on and off."
Police yesterday warned motorists to take "extreme caution", saying there had been a number of calls for assistance to emergency services due to surface flooding and fallen trees.
Police said there could be hidden hazards in areas where there is surface flooding.
Earlier in the morning, hundreds of Bay of Plenty residents experienced power outages.
If people required assistance to call the council on 07 348 4199 and to call 111 if it was an emergency.
If you require assistance please phone Rotorua Lakes Council on 07 348 4199. If it is an emergency phone 111.
Advice for preparing to evacuate/evacuating in the event of flooding:
- Lift valuable household items and chemicals as high above the floor as possible. - Fill bathtubs, sinks and storage containers with clean water in case water becomes contaminated. - Turn off utilities if told to do so by authorities as it can help prevent damage to your home or community. Unplug small appliances to avoid damage from power surges. - Where possible, move pets inside or to a safe place, and move stock to higher ground. - Residents leaving their houses should take the following – warm clothes, medications, toiletries, some food, water and important documents such as passports, family photographs and insurance policies. - Listen to your radio for updates. - Never try to walk, swim, or drive through swift water. If it is moving swiftly, even water 15 centimetres deep can sweep you off your feet and 30cm of water may cause you to lose control of your vehicle. - If you come to a flooded area, turn around and go another way. - If your car stalls, abandon it immediately and climb to higher ground. - Look out for flooding at highway dips, bridges, and low areas. 0.6 metres of water will carry away most vehicles, including SUVs, utility vehicles and light trucks. - Stay away from underpasses. Underpasses can fill rapidly with water, while the adjacent roadway remains clear. Driving into an underpass can quickly put you in 1.5 to 1.8 metres of water. - If you have a disability or need support, make contact with your support network.