Residents said they heard a loud bang as lightning hit the power pole in the middle of the street.

Some said a jolt went through the phone line.

Fire and Rescue NSW Gunnedah station commander Rod Byrnes said the power line arced into the water system.

"We evacuated all of Jarmain Close just in case there was a power surge through the water line," Mr Byrnes said.

Residents evacuated included a number of people with disabilities who needed transport suitable for wheelchairs.

The evacuation lasted about an hour until Essential Energy restored power and firefighters were sure the area was safe.

Jarmain Close resident Kymberly Clark said she heard the loud bang at about 4.30pm and residents were evacuated about 6pm.

"We could see the lightning and the power points were sparking," she said.

"The firefighters were really great, they came around and reassured everybody."