Laguna Beach police and firefighters responded Sunday to a report of a large amount of water flowing in an area between homes and south Coast Highway.
The call about the rushing water in the area of 10th and Sunset avenues came in around 7:30 a.m., according to Laguna Fire Chief Niko King.
The water opened up a large sinkhole on Sunset between 10th and 11th avenues, King said. A vehicle fell into the sinkhole and severed its own gas line.
At 10 a.m., workers from the Southern California Gas Company mitigated the gas leak and residents on Sunset and Virginia Way between 10th and 11th were evacuated, he said. Residents were then allowed to return home, but the area remain closed to vehicle traffic.
Members of Laguna Beach Public Works, South Coast Water District and the gas company were expected to remain on site to assist with cleaning efforts and to restore water and gas to the affected streets, King said.