The Little Elm Independent School District tells NBC 5 a gas leak was reported at Clark and Main Street at around 11:30 a.m. Thursday.
Julie Zwahr with Little Elm ISD tells NBC 5 166 people were evacuated from King Early Learning Academy, a daycare for district employees' children.
The students were moved to Zellars Elementary, where they will remain for the rest of the day.
Chopper 5 could see fire trucks and police blocking roads in the area as a construction crew worked.
Little Elm ISD says the same thing happened two weeks ago, but everything is expected to return to normal Friday.