Lincolnshire Police Control Room tweeted it was believed there are multiple areas where the main has burst. They said: "A burst water main has caused flooding and weakened the tarmac.
"We believe there are multiple areas the water main has burst so the road will be closed pending work by Anglian Water."
It is expected the road will be closed for several days and a water tanker has been provided to serve Southview Leisure Park which has also been affected..
Anglian Water confirmed yesterday (Saturday) six properties were being restored and a water tanker was being provided to serve Southview Leisure Park. A spokesman said: "All properties that were experiencing loss of water will now start to see their water supplies returning and we are providing a tanker to restore supplies to South View Leisure park.
"Due to damage to the road surface, the road is closed and will remain closed until the middle of next week.”
Former Skegness Standard photograpther Ben Hardaker said it was feared the problem is as serious as a burst that happened over a Bank Holiday in May 2000.
“I remember the incident took out a 16" main on the Burgh straight and a 12" main near the fire station, flooding a bungalow there,” he said.
“The town was without water for the whole bank holiday.”