[fireforeffect]

Looks to me like the water is flowing from the area with houses into the canal. Not into the city.

Possibly, Lake Pontchartrain has gone down enough for the water to be flowing out. OR the river is low enough?

Is this picture looking north or south.

My theory works if the blog reports from NOLA saying the water does not appear to be rising anymore are true.

[Torie]

The pic looks to the north. The lock and the Mississippi are just behind. So the breach in the levee is to the East, and not into the main NO bowl. And that bowl to the East was where the water got really deep, and apparently filled up to above sea level from the Mississippi overwash.