A CINEMA in Sydney’s CBD has been closed after being badly damaged by flooding when a water pipe burst in one of the city’s busiest streets, leading to traffic chaos.

Staff arrived for at Event Cinemas in George St and found the foyer area deluged with water about 7am today.

But the extent of the water damage was much worse further down in the building, with one cinema completely flooded, forcing its closure.

media_camera The water-damaged Event Cinemas in George St. Picture: Supplied media_camera The water-damaged Event Cinemas in George St. Picture: Supplied

Water reached all the way to the screens of one of the cinemas and led to structural building damage.

Fire and Rescue’s City of Sydney Inspector Craig Wright said the cinema was under 2m of water.

“The water board believe a 300mm pipe has burst ... that’s a big pipe,” he said.

“It was a supply from George St into the complex ... it is up in the ceiling of the cinema.”

He estimated pumping the huge volume of water out could take until midnight this evening.

It is not yet known if the flooding was related to light rail construction work being carried out outside the cinema of George St.

media_camera Fire crews at the flooding scene in George St today. Picture: John Grainger

But the Department of Transport denied there was a burst water main in construction zones.

“There is no burst water main at any of the light rail construction zones on George St,” a spokesman said.

“The cause of this incident is yet to be determined.”

Sydney Water’s Manager of Networks, Gary Hurley, said they were waiting for the water to subside to fully investigate the issue.

“Sydney Water crews are responding to a water leak impacting the George Street cinema complex in Sydney City,” he said.

media_camera Traffic grinds to a halt between Kent St, Liverpool and Bathurst streets. Picture: John Grainger

An Event Cinemas spokesman said they were working with Sydney Water to resolve the issue.

“We have taken the decision to temporarily close Event Cinemas George St today and expect to be fully operational tomorrow,” he said.

“We are also offering any customers directly affected full refunds and providing $10 tickets at Event Cinemas Bondi Junction.”

SYDNEY | #FRNSW crews are on the scene of flooding incident impacting the George St cinema area. 2 of 3 lanes blocked northbound on Kent St. — Fire & Rescue NSW (@FRNSW) July 31, 2017