Forecasters recorded a sudden deluge of up to 30 millimetres in as little as 15- to 30 minutes Friday afternoon as intense thunderstorms rolled over the Lower Hunter.
Roads and footpaths in the Newcastle CBD were quickly submerged as drains overflowed, and pedestrians were caught in the downpour.
At Maryland, emergency services were called to the scene of a crash involving two buses which occurred outside a school on Kariwara Parade around 3pm.
Police said three children received minor injuries and were assessed by paramedics before being reunited with their parents.
The ambulance spokesperson said a driver was also being assessed by paramedics.
Elsewhere, traffic lights were blacked out on the intersection of Madison Drive and the Pacific Highway Service Road at Charlestown. Drivers in the area were urged to exercise caution.
Forecasters for the Bureau of Meteorology said the weather was expected to ease into Friday evening as storms rolled north, with patchy showers lingering over the weekend.
Meanwhile, topical cyclone Dovi, currently near New Caledonia was forecast to intensify as it moves south over the eastern Tasman Sea over the next few days. Potentially hazardous surf and freshening to high winds are expected on the beaches Saturday.
The details of this report are developing. It will be updated.