The weather service has extended a flash flood warning for the region through Friday evening because of the possibility of additional showers and thunderstorms.
The situation was much more dire Thursday, when flooding prompted some evacuations in the city of roughly 80,000 people.
The Virginia Department of Highways transferred ownership of the dam and roadway to the City of Lynchburg; however, the lake continues to be under the ownership of the University of Lynchburg.
Later Friday, officials from the city said the inspection showed "the structure is now stable and that there is no immediate fear of dam failure".
"For the first time in probably 50 years or more, the emergency sluiceway at the bottom of College Lake dam has been opened and the lake is slowly starting to empty", according to the statement.
The dam was deemed intact Friday morning, CNN reported, although water has continued to cascade over the dam and into Blackwater Creek, which is two miles from downtown Lynchburg.More news: 7.0-magnitude natural disaster hits Indonesia; tsunami warning lifted
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Officials had warned late Thursday that its collapse would inundate parts of the city with 17 feet of water in just seven minutes.
Carter explained that they were already dealing with floods from days of rain - more than six inches which has gotten worse - and they have had to conduct evacuations, some by boat.
The lake is the largest urban lake in Lynchburg.
Around 130 residents downstream of College Lake were evacuated the night before after a deluge on rain hit the area.
"12 to eight inches of water is flowing over Lakeside Drive into Blackwater Creek".
There is some good news in the forecast: Following two weeks of relentlessly wet weather in the eastern US, a drier weather pattern will move in over the weekend and into early next week, AccuWeather said. The original surface area of the lake was reported to be 44 acres and has been reduced to 19 acres due to sedimentation.
Forecasters say the area has received 3 to 6 inches of rain this week.