Clearwater County has lifted the mandatory evacuation orders for two townships near Klein Lake.
The local state of emergency for the area has also ended.
Townships 31-10-W5 and 31-09-W5 were evacuated Wednesday evening due to fear of a dam breach.
Water levels above the dam receded between 30 and 60 centimetres Wednesday night, said Clearwater County spokeswoman Christine Heggert.
Inspectors will be on site to examine the dam today, she added.
Roads are now reopening in the area, but county officials are asking that motorists obey all remaining road closures and barricades.
A full list of road closures is available on the county’s website.
Klein Lake is about 150 kilometres northwest of Calgary.