The Arutz Sheva news site said that between six and nine people were reported dead after the flood in the 200-family Umm Nasser village near the Gaza Strip border with Israel. Two-hundred people were unaccounted for.
Angry residents attacked rescue workers and mobbed officials, the report said.
Umm Nasser Council Member Ziad Abu Farieh called the flood "our own tsunami," but Palestinian Authority officials blamed the flood on Israel and the West, saying Israel had threatened to bomb construction work for a modern sewage system.
Israel, meanwhile, offered assistance to the villagers affected by the raw sewage flood.
Defense Minister Amir Peretz told Israeli Defense Forces to prepare to evacuate the injured to Israeli hospitals, Arutz Sheva reported.