A "multi-agency" response, which includes the military and the fire service, has begun amid concerns the latest flooding could endanger lives.
Cumbria Police said: "We are also warning any motorists not to drive unless it is an absolute emergency as the flood water can cause a great risk to people's safety.
"We want to urge the public not to approach or go near any flood water as it is extremely fast flowing and can be a threat to people's lives."
The military has been called in to the village to help deliver food and water.
Ken Pollock, a guest house owner in the village, told Sky News: "It (the flood water) is higher than it was previously.
"It was back to normal and then it started again tonight.
"Everyone was helping out, they got it all cleaned up and washed out."
Gary Wilson, who is the manager of The Inn on the Lake in the village, said people are "heartbroken", having started to "get on top" of the clean-up operat
He told Sky News there had been "torrential" rain since 5pm, with many homes and shops under two feet of water.
Mr Wilson, whose business was unaffected, has set up an emergency room where locals can have hot drinks and showers.
Cumbria County Council has said the damage from the weekend's flooding was on a scale never seen before, with the situation changing all the time.
Residents are being told to remain vigilant as more rain is forecast heading into Thursday, bringing the potential for further disruption across Cumbria, parts of Lancashire and areas of North Yorkshire.
In Cumbria, thousands of tonnes of debris has fallen on to roads, carriageways and bridges in landslides due to the record amount of rainfall.
Appleby also remains at risk of further flooding, with limited vehicle access through the town.
Figures from a rain gauge at Honister in the Lake District showed a UK record 341mm of rain fell in 24 hours at the weekend.
The average rainfall in Cumbria for December is 146.1mm, according to the Met Office.
Meanwhile, the Government has pledged £51m for homes and businesses affected by the floods.
Chancellor George Osborne said families will be able to claim up to £5,000 each to deal with the damage.

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