Severe weather warnings for Sydney, the Illawarra and Central Tablelands have been cancelled, but the State Emergency Service (SES) says a "very serious" situation still lingers in the area.
The flood emergency predicted to hit metropolitan Sydney eased throughout Thursday, as the east-coast low's wrath was instead concentrated in the Hunter and Central Coast areas.
SES commissioner Carlene York says the organisation has been "very busy" around Wyong and Gosford and had performed rescues in the Hunter today.
Despite missing the worst of the weather predicted, Ms York said Sydney was "not safe as yet", particularly the communities along the Hawkesbury and Nepean rivers.
"There's still going to be thunderstorms and obviously the water is very high with the rivers at the levels they are, which is roughly the same as March last year, which sets them new records," she said.
"So it's still a very serious situation here."
The Northern Rivers region, already reeling from its worst floods on record, is also threatened by a fresh thunderstorm band being closely watched by the SES.
Heavy rain was predicted for parts of the Mid-North Coast and Hunter, but rainfall totals have been downgraded to a possible 60mm to 100mm.
By about 1pm tomorrow, the system will wash out but a cold front coming from Victoria will see an increase in severe weather over the weekend.
The improving forecast for Sydney means water spills from Warragamba Dam will be well below levels seen during the March 2021 floods.
The spill forecast for Warragamba was revised back to a rate of 300-350 gigalitres per day, well below the previous prediction of up to 600gl per day.
Along the Hawkesbury and Nepean, major flooding is continuing at North Richmond and river levels are still rising at Windsor.
Darren Osmotherly, owner of the Paradise Cafe in Lower Portland, told the ABC's 7.30 he and many others in the city's north-west were playing a "waiting game".
"The scars haven't healed from the last one [in 2021]," he said. "We've only just got over it."
Heavy rainfall is forecast for tonight and into tomorrow which may cause higher flood peaks but the levels are expected to remain below those observed last March.
Most evacuation orders are still in place for those in low-lying areas around the Hawkesbury and Nepean rivers but the SES has given the all-clear to properties in North Richmond around Redbank Dam where water levels are falling.
The SES has also cleared people who were subject to evacuation orders in parts of Milperra, Georges Hall, Holsworthy, Warwick Farm and Picnic Point - all in the south-west - to return home.
Last night flood levels exceeded those seen in 2013 around Menangle but the river is now falling.
Evacuation orders were issued this morning for flood-affected parts of the city with thousands of people living along the Hawkesbury River in Sydney's north-west and the Nepean and Georges Rivers in the south-west told to evacuate by 9am.
Jem Rooney, who lives at Redbank in North Richmond, slept in his car last night with his two cats after being told to evacuate.
"At the end of the day I've still got food, I've still got shelter," he said.
"It's literally hour by hour at the moment."
Father and son Craig and Tory live in North Richmond.
The bottom of their street has been told to evacuate but they're staying put for now but are watching the river levels closely.
"The way it was coming up last night it was pretty scary," Craig said.
"It's worrying because we're not 100 per cent sure whether we can get out."
Many roads across Sydney remained closed due to flooding, including the Bells Line of Road at North Richmond, the Yarramundi Bridge and Windsor Bridge.
More than 100mm of rain fell over parts of Western Sydney overnight and the BOM is forecasting that flooding along the Hawkesbury and Nepean Rivers could be worse than that seen this time last year.
Windsor resident Gerry Claravall was preparing to evacuate his home overlooking the Hawkesbury River at Windsor.
"My wife and the kids are packed up and ready to go," he said.
Mr Claravall is keeping a close eye on the river, where he said water levels were rising much faster than they did during the March 2021 flood.
"Last year, it took about three days for it to rise, this one took three hours," Mr Claravall said.
Fire and Rescue NSW (FRNSW) Commissioner, Paul Baxter, said resources were under pressure in the Sydney area, with many crews heading to the north of the state to help with the recovery effort.
"Unfortunately the weather is hitting us in the city, hitting all the way down the coast and the south coast," he said.
"Our resources are going to be pretty stretched and we are going to need other support which we are bringing in interstate."