Yes, there is water nearby. Its kind of setup to become a disaster with heavy rains. The road is pretty steep and is right along the western slope of the Greens . I attached a couple images below of the road, where the water intersects, and waterfall. At the top of the road where it ends is actually also a waterfall with a culvert that goes under the road and the water eventually meeting up with Bromley Brooke and the Battenkill. The terrain at the top of the road goes like straight up almost from there a couple thousand feet.
So you have steep terrain with a waterfall and stream/brook flowing down the hillside and 5" in a few hours and you see what happened. It's a beautiful spot other then when a 10ft deep section of road is wiped out....