Arcade's location in the valleys of two creeks led to its steady growth in the 19th century, particularly in the downtown area, where Clear Creek flows into Cattaraugus Creek. That growth and prosperity, however, led to flooding whenever heavy rainfall occurred in both watersheds at the same time. The worst flood in Arcade's recorded history was in 1902, followed by one in 1998. After the 1998 flood, the Garden at the corner of East Main and Water streets replaced two homes there, plus one other.