The top of an irrigation water duct of Quting Reservoir in Hongtong county caved in on Saturday leading to collapse of its dam walls, official media reported.
No casualties have been reported. Thousands of villagers were evacuated to safety.
The floods damaged a highway and rail lines, leaving thousands of holiday passengers stranded at various places.
While the highway was flooded with silt, railway tracks were swept away. Eight railway lines have been shut.
More than 3,000 passengers have been stranded and temporary offices are dealing with ticket returns.
Officials said the irrigation duct was built in 1959 and attributed its collapse to its age.
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