Around 300 families in Wainfleet have been told they can return to their homes after the town was devastated by floods.
More than 500 houses were evacuated last week after the river Steeping burst its banks.
A public meeting was held last night discussing a phased return.
Around 250 residents are still unable to return to their homes.
Some people were forced to flee after water deluged their homes. Others were moved away as a precaution as flood waters rose.
The level of the River Steeping is now very close to normal, but there is still standing water around Wainfleet over the saturated streets and land.
The Environment Agency said the area experienced two months’ worth of rain in just two days – with 132mm between June 10-12, which is considered “an unprecedented event”.
A Chinook helicopter had been working to help stem the flow of water, and the Environment Agency brought in a giant pump to drain flood water from Wainfleet.