The city, located in Brunswick County, took to Facebook and said the failure of the dam was due to the water volume over the last several days.
The Big Lake began draining at a fast rate along with Pine and North Lakes.
The Emergency Action plan was enacted and the city said no member of the public was at risk.
Downloading the ABC11 app is the best way to stay up-to-date on the latest conditions from Hurricane Florence.
Several roads are closed for the immediate future, including Alton Lennon, E. Boiling Spring Road and Hwy 87.
Florence vs Matthew: North Carolina rivers may crest higher than 2016 hurricane