Skipton was on a knife-edge last night as hundreds of people's homes faced being flooded as Eller Beck threatened to burst its banks.

Emergency workers feared the Springs section of the Leeds-Liverpool canal would overflow if a retaining wall holding back the beck collapsed.

A flood warning was given and hundreds of people evacuated from their homes as water continued to rise.

Skipton Town Hall in High Street was opened as an emergency feeding and accommodation centre. Other people chose to stay with relatives.

Those who stayed at home in the threatened area of Coach street, Keighley Road and Broughton Road packed their doors with sandbags. But this morning the emergency was lifted as the water subsided overnight.

Officials from the Environment Agency and British Waterways were reassessing the situation this morning and looking at the possibility of carrying out works to provide some sort of dam to stem the flow of water in the event the retaining wall was breached.

The potential breach came to light on Monday when Eller Beck caused flooding in Skipton after bursting its banks. The situation was kept under regular review and action taken yesterday.

Council spokesman Mick Cartledge said: "If it overflows we will put people up in Aireville School in Gargrave Road. We have 40 or 50 staff working here, answering phones and out in the streets."

Pensioner Edna Preston was evacuated from her Keighley Road home. She said: "My property is not flooded so I'm wondering whether to go home and stay upstairs," she said. "This is the worst I have ever seen it in 25 years and it's certainly the first time I've ever been evacuated."

Linda Fairman from Kirkby Stephen was also staying at the town hall. She had been in Kent on holiday and couldn't get further than Skipton by train due to flooded lines.

More than 30 police officers and night shift staff were brought in to help and advise people. A police spokesman said: "Normally, the lock keepers would open the sluice gates from here to Bingley to let the water go but due to the horrendous conditions they can't do that, so we are left with this situation."

Karen Bradley, of Broughton Road, was evacuated at 5.30pm. "They have sandbagged a lot of houses but we were told to get out," she said. "We don't know whether to go back to the house, but I've got two children and how do you run with a five-year-old if the water comes?"

Along Keighley Road, which faces the canal, residents who had chosen to stay put were helping to fill sandbags. One resident said they had filled 1,200 bags during the evening.

John Dawson, of Keighley Road, had eight bags wedged against his front gate. He said: "I moved here on Monday from Doncaster. The surveyor's report said there was no risk of flooding!"