The victims were a family included a grandmother and four of her grandchildren were killed and another person.
The flooding that ensued left five people dead who, despite being able to their flooded homes, were swept away by the fast-moving water.
Those killed were identified as Jamonicka Johnson, 6, Von Johnson Jr., 7, Devonte Asberry, 8, Venetia Asberry, 9, and Lenda Asberry, 64, the city said. Palestine police took the bodies to Tyler, Texas, for autopsies, officials said.
The city of Palestine in Anderson County, around 160km southeast of Dallas, was one of the worst hit areas as it received 19mm of rain in less than an hour.
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