Is it just me, or does it appear that Chimney Rock was built on a river bed? I’m willing to bet that the whole area does get completely washed out occasionally...
Most all of the mountain commmunities were built years ago on water/riverine locations because those were the best “highways” through the rugged mountains and in the valleys below. So yes, they do and they have before, many of them.
Galax,VA is one. The Johnstown flood from the collapse of the private lake and dam built by Andrew Carnegie— is a very dramatic example of destruction- quite a story there- and the exclusive club of owners on the lake were not injured- Carnegie sold out his interests after.