Parts of Lad Krabang industrial estate were flooded after a dyke was breached on Saturday evening, reports said.
The water level inside the estate was about 50 to 70 centimetres, and workers had been evacuated to safety.
Large sandbags and wooden pillars were put up to stop the overflow from the Lam Taeng Mo canal into the estate in Bangkok's eastern suburbs.
Thanes Weerasiri, chief of the Engineering Institute of Thailand, said an attempt to drain water from the swollen Lam Taeng Mo canal had caused the water level to be lower than the earthen dyke, which then subsided. This allowed the water to flow into the estate.
Authorities were draining water from the estate and the breach had been plugged with big-bag barriers. The situation was under control but the extent of the damage was not known yet, said Mr Thanes.
Supannee Tiewthanorm, assistant to the chief of Lad Krabang Industrial Estate, said in the early evening that the breached dyke was five metres long and repairs were expected to be finished Saturday night.