The evacuation order for Vale Island and the West Channel has been lifted.
After water levels dropped in the past day, the Town of Hay River announced residents could return to their homes.
Water levels have dropped around town, with the town saying there is a good flow of water along the West Channel.
The Town of Hay River warned that water levels are still high and there is still ice jammed in the East Channel, which could breach the banks of the old town area.
Hay River residents on Vale Island and along the West Channel were still on high alert on Monday, with water levels at record highs in some areas.
The town said they would be monitoring water levels until both channels are “flowing freely to the lake.