A burst water main has been shut down after it flooded several streets in Sydney’s inner-west this morning.

Multiple homes, businesses, and cars were inundated and parts of the road ripped up, after torrents of water were sent flowing down Audley Street towards Trafalgar Street in Petersham, just after 11am.

Sydney Water believes the rupture was a result of recent cold weather and dry road conditions.

Residents told 9NEWS the water level reached a height of “half a palm tree” in one area.

Fifteen valves around the city had to be turned off to finally stop the water flow.

The age of the mains could have been a contributing factor to the burst, according to Sydney Water.

"One was installed in 1901 and the other was installed in 1964. We're in the process of trying to work out which main has failed and the only way to tell is by a process of elimination," Sydney Water's Darren Cash said.

Homes in Balmain, Leichardt, Petersham, Newtown and Ashfield may experience ongoing lower water pressure.