A 30-foot section of the Truckee canal fell apart. That led to mandatory evacuations early Saturday morning.
Helicopters circled the area looking for stranded residents where the water was deepest. No injuries were reported.
Busses carried the evacuated home owners to shelters that have been set up outside of Fernley.
The mayor of Fernley says there are reports of damage to at least 300 to 400 homes.
