The Town of Canmore was shut down on Thursday after Cougar Creek burst its banks but officials say power has been restored and some residents are being allowed to return to their homes.
Many areas were evacuated on Thursday and the town was virtually shut down.
Homes along Cougar Creek were the most vulnerable and those on the east side are still under an evacuation order.
The town says that Palliser is open and residents can return home.
An evacuation centre is set up at Canmore Collegiate High School.
The town is still under a state of local emergency and officials are warning residents to stay away from the banks at Cougar Creek as they are unstable.
Officers are conducting door-to-door searches in the evacuated areas to make sure no one is left behind.
The Town of Banff is not currently under an evacuation order but there are reports of localized mud slides on the west side of town.
A shuttle bus is running to take residents around the damaged highway and times are posted on the town's website.
