Heavy rainfall and weather warnings for Thursday have been downgraded with 25mm to 35mm forecast across Canberra.
This comes after emergency services issued a warning predicting 40-60mm of rainfall.
Showers began about 2am Thursday and just over 10mm was recorded at the airport by 9am.
Bureau of Meteorology engagement officer Morgan Pumpa said showers were expected to continue throughout Thursday.
"We have a trough which is deepening and it's combining with moist easterly airflow and that's what's bringing those showers," Ms Pumpa said.
"In some areas that are already quite wet, that increases the chance of flash flooding."
Showers are expected to persist into the weekend, though ease off to 2-8mm on Saturday, before a likely break on Sunday. However, wet weather is expected to return to the territory from Tuesday.
Canberrans planning trips to the south coast of NSW should also plan ahead and watch the road conditions carefully, Ms Pumpa said.
"We also see the chance of some heavy rainfall across southern parts of the Southern Tablelands, South Coast and also Illawarra over the coming days, so it's important that people keep an eye on the forecast as they plan for the weekend," she said, urging people the check the BOM for forecasts and warnings.
"There could be widespread 200 to 300 millimetres over the next two to three days on the south coast."
Swell of up to seven metres hit the south coast at the weekend, causing significant erosion at Long Beach, Surfside, Tomakin Cove and South Broulee, the Eurobodalla Shire Council said.
The council's coastal and flood planner Cameron Whiting said the impacts had not been a surprise and reflected modelling outlined in the coastal management program.
"The storm reinforced our understanding of the areas that are vulnerable, how they will behave under certain conditions and that our coastal hazard assessment mapping has been on the right track," he said.
Mr Whiting said that the council would present a range of mitigation options for the community to consider this year.
NSW residents are being warned to prepare for more wet and wild weather as the Bureau of Meteorology issues a flood watch for parts of the state.
The BOM has predicted heavy rainfall for Sydney and coastal areas south of Sydney on Thursday and Friday, with a flood watch for Hawkesbury-Nepean and other coastal catchments issued on Tuesday.
"These regions can expect between 50-150mm of rain on Thursday and between 50 and 100mm of rain on Friday," a statement from the bureau said.
"Moderate rainfall is expected in north-eastern NSW on Thursday and Friday.
"The bureau is monitoring the forecasts closely and communities should continue to monitor the bureau's website and BOM Weather app for updates to forecasts and warnings."
The bureau's statement also said there was an increased risk of flash flooding and landslides as catchments were saturated.
"Showers in New South Wales are expected to continue through to next week but are expected to ease over the weekend," it said.
"The bureau is recommending communities in these areas stay up to date with the latest warnings through the bureau's website (www.bom.gov.au/nsw/warnings) and BOM Weather app and follow the advice of emergency services."
This news comes just weeks after the town of Lismore in northern NSW experienced its second major flood event in just two months.
