Despite two days of clear skies, a state of emergency and a local evacuation remain in effect for Fort McMurray as residents continue to brace for severe flooding.

Large chunks of mud and gravel have already eroded from the banks of the Hangingstone River and locals are worried more erosion could dam the river and flood the town.

鈥淎t about 8 o鈥檆lock last night just shortly after we had given the evacuation, we had a large chunk that actually did fall into the river,鈥 deputy fire chief Brad Grainger said.

Grainger says geo-technicians surveyed the hill just after the incident and again early Friday morning.

鈥淔ortunately it wasn鈥檛 large enough to displace the water flow that had happened in there,鈥 he said.

On Thursday, 400 people were ordered to evacuate their homes in the Grayling Terrace area.

According to Environment Canada Fort McMurray can expect up to 20 millimetres of rain by the end of Saturday.

Regional Mayor Melissa Blake made an impromptu visit to the area to speak with residents.

鈥淲e are hopeful that disaster funding would be a supplement to any damages that people suffered personally,鈥 Blake said.

While residents continue to watch the sky, for some the damage has already been done.

鈥淚鈥檝e lost my basement, the water鈥檚 come in it and I鈥檝e pumped out two feet over three times,鈥 resident Dave Beacon said.

鈥淚n the daytime I feel I can hear it, it will be coming and I will just leave the house and watch it float. But at nighttime when I am laying in that bed -- I鈥檓 sleeping with one eye open,鈥 home-owner Kelly Touey said.

There is still no word on when residents will be allowed to return to their homes.

With report from CTV Edmonton鈥檚 Amanda Anderson