The culvert carries the Afon Cwrt river to the nearby beach
A large section of car park, near to a popular sea front, collapsed after an underground culvert crumpled.
The hole, at Criccieth in Gwynedd, was spotted by restaurant owner Peter Booth who placed bollards around it.
Mr Booth said he realised what had caused it because a similar collapse happened nearby, about five years ago.
A spokesman for Gwynedd council said investigation and repairs to the culvert carrying the Afon Cwrt river were now underway.
"It was a small hole, about 4ft wide, when I first spotted it but I could see that it was sinking around the edge so I place bollards around it," said Mr Booth, who owns the Moelwyn Restaurant.
"I realised what it was because I know the culvert runs underneath that area and a similar hole appeared nearby, about five years ago," he added.
"I am concerned because if another hole appears it could be closer to our business," he said.
Mr Booth said the hole had now been opened out for access.
"It's massive now, about 10ft (3m) to 20 ft (6m), and about 5ft (1.5 m) deep.
"Fortunately we are closed at the moment, and we have been warned the work may take some time.
Town council
"We're not that bothered by that though, as we just want the work done properly," he added.
Criccieth Town Councillor R T Price said: "I'm not sure what the best technical way is to check further along this culvert, but I want to make sure that it is checked properly, as it runs under the gardens of a nearby terrace of houses," he said.
The car park area has been cordoned off
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"It has been there for around a hundred years though, and perhaps it's collapsed under the car park because of the weight of heavy vehicles," he added.
Nearby resident Bob Roberts said it was lucky the collapse happened in the quieter winter months.
"I'd parked my car there a couple of nights earlier.
"It's lucky no-one was injured," he added.
A Gwynedd council spokesman said: "Following problems with a section of the Afon Cwrt culvert at Criccieth, barriers have been put in place to ensure the public's safety."
He said the council's Consultancy Service had already started investigative work in the area, and were carrying out remedial works "to limit the damage".
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