The federal government can be held financially liable to hundreds of Hurricane Harvey flood victims because officials knew two reservoirs could flood their Houston-area properties, a federal judge ruled on Tuesday.

The ruling, by Senior Judge Charles Lettow of the United States Court of Federal Claims in Washington, D.C., allows the property owners to seek compensation from the United States Army Corps of Engineers for their flooded homes and businesses, dealing a blow to the federal government. Hurricane Harvey dumped more than 33 inches of rain over four days in 2017, causing catastrophic flooding in more than 150,000 homes across the region.

The Addicks and Barker Reservoirs, west of Houston, were constructed decades ago to protect downtown Houston by retaining floodwaters. But the reservoirs proved inadequate, with water overflowing from federal lands into neighboring properties.

In a 46-page opinion, Mr. Lettow said the flooding amounted to the government “taking” the private citizens’ land, since officials have known for decades that private lands would be flooded in a big enough storm. The government had argued during a 10-day trial in May that Harvey was an unprecedented storm, making flooding inevitable.