Water from overflowing lakes entered houses in several colonies on the outskirts of the town, rendering hundreds homeless.
Authorities sent teams of National Disaster Response Force (NDRF) from Kurnool to Anantapur for rescue and relief operations.
Anantapur, which is synonymous with drought, saw unprecedented rains and flash floods.
Residents were facing severe hardships as they lost all their belongings. They said water entered their houses late Tuesday night, forcing them to save themselves by moving to a safe place.
Roads in the affected areas turned into rivulets while houses were still under three feet deep water.
Local officials shifted affected people to Saibaba temple and government schools where temporary relief camps have been set up.
People complained that the authorities failed to come to their rescue. They said they lost food, essential commodities, clothes, utensils and all household items. At a few places, people were seen wading through waist-deep water to salvage whatever belongings they could.
The affected people demanded immediate steps to provide food and drinking water and milk to the children.
Residential areas around Nadimivanka channel which flows through the town were inundated due to heavy flow of rain water from Alamur and Yaleru lakes. People alleged that encroachments hampered the flow of water leading to inundation.
Angry residents in Rudramapet area came together to demolish a few walls which were obstructing the flow of water.
Yuvajana colony, Rajaka Nagar, Shanti Nagar, Rangaswamy Nagar, Adarsh Nagar, Chandrababu Nagar and other colonies were marooned.
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