Large sections of the city flooded after the earthquake, and a landslide near the Tralcán Mount dammed the Riñihue Lake. Water levels in Lake Riñihue rose more than , raising the danger of a catastrophic break and of destroying everything downriver. Government authorities drew plans for evacuating the city, but many people left on their own. Danger to the city was reduced after a large team of workers opened a drainage channel in the landslide; water levels of the lake slowly returned to normal levels. There is evidence that a similar landslide and earthquake happened in 1575. After the Great Chilean earthquake Valdivia's economy and political status declined. Much of the city was destroyed and many inhabitants left.