It happened before 7:30 a.m. Monday at Red Lion and Verree Roads in Bustleton.
Philadelphia Water Department (PWD) spokesman John DiGiulio told Action News a 12-inch main ruptured.
Images from Chopper 6 HD over the scene showed water surging up from beneath several manhole covers, flooding a large portion of the intersection.
PWD shut down water service in the area at 9:30 a.m. The utility said 10 businesses and 15 residences were without water.
Red Lion Road was closed from Ferndale Road to Verree Road.
There was no immediate word when the repairs would be completed.