The Black River has receded and is no longer topping the dam on Switch Road in Ramara Township, indicating Lake St. John has stopped rising.
Officials are hopeful there is currently enough room in the Black River to handle the rain on Wednesday and Thursday without topping the dam again.
Residents across Muskoka are reminded to continue to be diligent in testing drinking water.
States of emergency remain in effect for several communities including Bracebridge, Muskoka Lakes, and Minden Hills.