Snyder's Road East has been closed after a sinkhole over a metre across and more than a metre deep was found near Coachman's Lane on Tuesday afternoon.
The road is closed between Foundry Street and Sandhills Road, and is expected to remain that way for several hours while repairs are completed.
Two other sinkholes were also found nearby, one on private property and one on the shoulder of the road.
Local residents reportedly noticed a depression in their flower bed about two weeks ago, but the two on and near the road were discovered around 3 p.m. on Tuesday.
There are reports that the sinkhole may have been caused by an old water line that fed a nearby cheese factory that was torn down about ten years ago.
Emile Marion, supervisor of technical operations in the Transportation Division, Region of Waterloo, says "First of all let's find out what it is, and then after that we'll try to fix it."
Heavy equipment is being brought in to dig up the area, find the cause of the sinkhole and then complete the repairs.
Waterloo Regional police are asking drivers, cyclists and pedestrians to avoid the area, and suggest using Foundry Street or Sandhills Road as alternatives.
Only residents living or working in the affected areas will be allowed in, police say.
