The alarm was raised soon after 4am with reports of a hole emerging along the waterway, causing large volumes of water to escape onto land in the Chemistry area of Whitchurch.
Shropshire Fire and Rescue Service said that three boats were caught in a developing sinkhole approximately 50 metres by 50 metres in size and that approximately 12 people from nearby moored boats were helped to safety.
A major incident has been declared and the fire service is working with other agencies including the Canal & River Trust, which has begun its own investigations into the sudden collapse.
See some of the most dramatic photos from the day's events below:
The scene in Whitchurch after a huge sinkhole opened up. Photo: Tim ThursfieldThe scene in Whitchurch after a huge sinkhole opened up. Photo: Tim ThursfieldThe scene in Whitchurch, Shropshire, where emergency services declared a major incident. Photo: Andy Kelvin/PA WireThe scene in Whitchurch after a huge sinkhole opened up. Photo: Tim ThursfieldThe scene in Whitchurch after a huge sinkhole opened up. Photo: Tim ThursfieldThe scene in Whitchurch, Shropshire, where emergency services declared a major incident. Photo: Andy Kelvin/PA WireThe scene in Whitchurch after a huge sinkhole opened up. Photo: Tim ThursfieldThe scene in Whitchurch after a huge sinkhole opened up. Photo: Tim ThursfieldThe scene in Whitchurch, Shropshire, where emergency services declared a major incident. Photo: Andy Kelvin/PA WireThe scene in Whitchurch, Shropshire, where emergency services declared a major incident. Photo: Andy Kelvin/PA WireThree boats became caught up by the 50-square-metre sinkhole which developed at 4.22am today. Photo: Tom Maddick/SWNSThree boats became caught up by the 50-square-metre sinkhole which developed at 4.22am today. Photo: Tom Maddick/SWNSThree boats became caught up by the 50-square-metre sinkhole which developed at 4.22am today. Photo: Tom Maddick/SWNSThree boats became caught up by the 50-square-metre sinkhole which developed at 4.22am today. Photo: Anita Maric/SWNSThree boats became caught up by the 50-square-metre sinkhole which developed at 4.22am today. Photo: Anita Maric/SWNS