A construction crew ruptured a two-inch gas line with a backhoe near Saklan Road and West Street around 11:25 a.m., fire Capt. Thor Poulsen said.
Firefighters and police evacuated residents of nearby homes. No injuries have been reported.
PG&E crews arrived on scene shortly before 12:30 p.m. and had stopped the leak by 2:10 p.m., PG&E spokesman Matt Nauman said.
Nauman said the evacuated residents are now being allowed back into their homes, and that only one lane of traffic is blocked for repairs.