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Raw sewage is said to be pouring out of the pavement in Nunwell Street in Sandown.
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Southern Water has confirmed it is looking into reports, and has passed details onto its engineers.
Residents say the smell is 'horrendous'.
Photos show human excrement on the pavement and road.
Sewage systems across the Island have been badly affected by heavy rain and flooding earlier in the week.
Isle of Wight Radio has asked Southern Water for a comment.