The lake in Hualien county, formed by a series of landslides that created a natural dam wall, burst on Tuesday and sent a torrent of mud and sludge into the surrounding area.
Hualien County Government press official Lee Kuan-ting confirmed the death toll of 14 people with a further 18 individuals injured.
He emphasised the urgent need to investigate why evacuation orders were not properly carried out in the affected area.
One local resident described the terrifying event as resembling a scene from a disaster movie.
Floodwaters rose rapidly to halfway up the first floor of buildings within mere minutes of the barrier failing.
Official footage released by fire authorities showed completely flooded streets with half-submerged cars and uprooted trees across the affected region.
Taiwan regularly experiences tropical storms during the period from July through to October each year.
The island was hit by Typhoon Danas in early July, which killed two people and injured hundreds after dumping more than 50 centimetres of rain. – AFP
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