A regional levee director says "There's no indication of any walls in distress," as Hurricane Gustav sends water rushing up against New Orleans' floodwalls.
And he says there is "no evidence of major seepage."
Wind-driven water is coming over the top of the Industrial Canal's floodwall, and there is flooding in about half of the streets closest to the canal. In some places it's knee deep.
In one spot, the water is pouring over. In other places it's merely sloshing over.
City officials and the Army Corps of Engineers say they expect the levees will hold. The canal broke during Hurricane Katrina in 2005 and during Hurricane Betsy in 1965.
But Mayor Ray Nagin is urging people to "resist the temptation to say we're out of the woods." He says heavy rainfall could still flood the city over the next 24 hours.
Gustav slammed into the heart of Louisiana's fishing and oil industry west of New Orleans as a Category-2 hurricane, with winds of 110 miles-per-hour.
One traffic death in Louisiana has been linked to the storm.
Gustav is blamed for 94 deaths in Jamaica, Haiti and the Dominican Republic.