Surrey Police have closed Godstone High Street between Oxted Road and Bletchingley Road, and a cordon is in place.
Police said a small number of buildings have been evacuated as a precaution while the emergency services respond.
The road is likely to remain closed for an extended period of time, the force added.
The sinkhole is estimated to be at least 19m (62ft) long and about 3m (10ft) wide.
SES Water said it was aware of a burst water main in Godstone High Street in the early hours of Tuesday morning, which was affecting water supply to homes in the area.
Posting on social media, a SES Water spokesperson said: “We’re aware of a burst water main pipe on Godstone Highstreet, RH9 8LS, which is affecting the water supply to homes in the area. Our teams are on site to carry out urgent repair work. A road closure is in place to ensure the safety of our teams on site.
“We’re really sorry for the disruption this is causing and are doing all we can to resolve the situation as quickly as possible.
“We do not yet know at this stage when the pipe will be fixed, we will be providing updates as soon as we can on our website here: https://bit.ly/3lkNImF
“If you have an emergency, please call us on 01737 720000.”
In an update posted at 10.51am this morning (February 18), a SES Water spokesperson said: “Customers within RH1 and RH9 are currently experiencing water supply issues, due to a burst main on Godstone High Street.
“We are working at pace with key partners including UKPN UK Power Networks), SGN and emergency services to ensure we can safely repair the main as soon as possible.
“Road users should avoid travelling near Godstone High Street - a signed diversion route is in place. Customers on our Priority Service Register will be delivered bottled water by our teams this morning.
“Please continue to check our website for further updates. If you have an emergency, please call us on 01737 772000.”
1. Godstone sinkhole: Buildings evacuated and part of high street closed after large hole emerges
Buildings have been evacuated in Godstone after a large sinkhole emerged in the middle of the high street. Photo: Eddie Mitchell
2. Godstone sinkhole: Buildings evacuated and part of high street closed after large hole emerges
Buildings have been evacuated in Godstone after a large sinkhole emerged in the middle of the high street. Photo: Eddie Mitchell
3. Godstone sinkhole: Buildings evacuated and part of high street closed after large hole emerges
Buildings have been evacuated in Godstone after a large sinkhole emerged in the middle of the high street. Photo: Eddie Mitchell
4. Godstone sinkhole: Buildings evacuated and part of high street closed after large hole emerges
Buildings have been evacuated in Godstone after a large sinkhole emerged in the middle of the high street. Photo: Eddie Mitchell