The news has come after Hurricane Maria has pummelled northern Caribbean with “catastrophic” flooding and torrential downpours leaving Puerto Rico and the Dominican Republic in ruins.
The National Weather Service San Juan tweeted: “2:15pm flash flood emergency for a dam failure in Isabela municipality y Quebradillas municipality in Puerto Rico…”
They added: “This is an extremely dangerous situation. Busses are currently evacuating people from the area as quickly as they can.
“All areas surrounding the Guajataca River should evacuate now. Their lives are in danger! Please share!”
Hurricane Maria has killed at least 32 people and left thousands homeless after first making landfall on Monday night when it struck Dominica.
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When the storm struck Dominica on Monday, it damaged around 95 per cent of the roofs on the island.
At least 14 people were killed in Dominica as the storm barrelled over the island.
Meanwhile, the increased death toll includes at least 15 in Puerto Rico too, eight of whom drowned in the town of Toa Baja, where more than 4,000 people have been rescued as a result of the flooding.
Three elderly sisters also died following a mudslide in the mountainous central municipality of Utuado, according to local media.
President Trump told reporters Puerto Rico had been “totally obliterated” and that he planned to visit.
Joaquin Rebollo, a 69-year-old steelworker who lives in the capital San Juan, said: “It’s like we’re in Venice.
“It was a really bad experience, really bad. I almost died of fright.”
Hurricane Maria is now expected to head to the northeast and east of the Bahamas over the weekend, forecasters have said.