Basements are flooding and roads are submerged along parts of New Brunswick's St. John River. Premier Shawn Graham says the worst is over for Fredericton, but the situation remains serious in the outlying areas.

Much of the flooding is taking place in a wide area from Edmunston in the north to the small communities down river from Fredericton. In the provincial capital, government buildings, schools and many businesses were shut down and more than 50 roads were closed.

During a news conference Thursday, Graham suggested the peak has occurred in Fredericton, but warned that residents to the south should brace for rising water levels as the flow makes its way downstream.

The flood level was 6.5 metres Thursday afternoon, but the river was expected drop only 13 centimetres by Friday morning.

He acknowledged many residents are struggling with flooded streets and basements but said the response by emergency officials has been impeccable and the situation is in control.

Flooding reports are coming in from all along the river which winds through 670 kilometres of the province, but some of the most dramatic images have come from Fredericton.

Resident could be seen paddling canoes and kayaks in areas of the downtown Thursday, as the river reached 8.34 metres, spilling its banks and looking more like a large lake than a river in many places.

In 1973, the river reached 8.61 metres, when more than 400 homes and businesses were flooded, causing $12 million in damage.

"It means a lot of the downtown core is full of water," said CTV Atlantic's Andy Campbell.

"There are roads closed, the provincial legislature is closed, government offices are closed. There are businesses in downtown Fredericton putting sandbags around their doors."

The historic Lord Beaverbrook Hotel was evacuated, and the Beaverbrook Art Gallery, which boasts originals by Salvador Dali and Sandro Botticelli, moved artworks from the basement over fears of flooding.

Earlier Thursday, emergency officials said 1,300 homes were threatened by the flooding and by evening, more than 500 families had registered with the Red Cross and moved out of their houses. But it's unclear how many have been displaced, since many have abandoned their homes to stay with friends and relatives.

"Water levels continue to rise along the entire St. John River," the provincial government said in a statement.

"Further increases are expected through (Friday), and water levels will continue to rise downstream through the weekend."

Higher ground

In Burton, N.B., a last-minute change of heart brought more flood plane residents to higher ground Thursday with the help of safety officials after flood waters rose overnight and power was shut off.

"We were just going to stick it out, just stay home," evacuee Courtney MacFawn told CTV Atlantic. "Then the water just got too high and it started coming into our house, so we had to leave."

"They turned off the power. I mean you've got no heat, you've got no food," said evacuee Emily Estabrooks. "So, you've to to get out."

Burton is located on the St. John River, immediately downstream (southeast) of Oromocto.

Meanwhile, there was almost a festival atmosphere in parts of Fredericton as residents came out to take pictures and view the high water.

"Any sort of dip in the road and we're seeing quite a pool of water here," CTV's Lisa LaFlamme said Thursday, reporting from a water-logged Fredericton street. "Many people were watching from canoes or in hip waders on their own street."

People putting themselves 'at risk'

While communites are coming together to survive the flood, safety officials say this could have been avoided.

"This is the thing that we warned poeple about earlier on in the week, and they didn't heed our warnings," Oromocto Fire Chief Jody Price told CTV Atlantic.

"And now we're over there with boats, trying to evacuate (people) from their homes. It's an extremely dangerous situation and our people are being put at risk, as well as the public. But it's the only thing we can do right now"

In neighbourhoods where roads have been closed, residents who decided to stay in their homes may have to wait seven to 10 days until they will be able to leave. One elderly woman was airlifted from her home Wednesday night after emergency vehicles were unable to access her home, LaFlamme said.

The province's electric utility also cut off power to the worst-hit residential neighbourhoods. According to NB Power, about 90 per cent of the 380 customers who have been disconnected are in Fredericton and nearby Maugerville.

"We happened to be in the worst-hit neighbourhood in north Fredericton when the power went out," she said. "You could almost hear the echo, like 'OK, no power, it's time to get out.'"

The University of New Brunswick has offered dormitory space for residents fleeing their homes, but only about 50 people have taken up the offer so far, said LaFlamme. About 250 people have fled their homes, but most are staying with family members and friends.

The Red Cross has also set up a disaster relief centre in the city, designed to help people now and once the flooding is over.

New Brunswick Premier Shawn Graham has said the province will come up with a financial aid package next week. But he noted, for now, he just wants to make sure everyone is safe.

With reports from CTV Atlantic's Erin O'Halloran and Andy Campbell