Horncastle came within inches of major flooding on Sunday after emergency services battled to stop the River Bain bursting its banks.
Rapid snow melt caused levels in the Bain - and the River Waring - to rise rapidly.
Local county councillor and flood warden Bill Aron said he “feared the worst” at one stage.
Emergency crews from East Lindsey District Council rushed to the banks of the Bain on Watermill Road and laid sandbags.
A pump was on the verge of being called in to deal with rising water in the Ings Drain before levels started to fall back.
Coun Aron said he could not praise the efforts of workers enough.
He added: “It was a crazy weekend.
“On Saturday, we were putting the snow plan into operation and on Sunday, flooding was the major worry.
“The Bain was very high and at one stage, the water did come over into Watermill Road.
“It was worrying and I think we all feared the worst.
“ELDC delivered sand-bags to every household in Prospect Street and we were on the point of opening the emergency sandbag station when luckily, the levels started to drop.
“The rain ceased and there was a drying wind.
“It could have been a different story.”
There were reports of flooded roads in various local villages - including Bardney.Some main routes were also affected.
The Bain is at the centre of major improvements to Horncastle’s flood defences.
A holding lake will be constructed to the north of the town and Coun Aron said he hoped work could start as early as 2015.