The huge hole in the road surface has developed on Moor Lane between Bridlington and Driffield.
It has been measured at six inches in depth, and a 'danger: deep water' sign has been placed next to it - alongside a warning not to swim in it.
Alex Wood, the managing director of local business Neptune Solar Ltd, said the stretch is a blackspot for potholes.
“I run a company with 44 staff that have to travel down this lane to work and back every weekday.
“My business is located on Moor Lane, the council have never resurfaced this road since I have been here which is about 30 years.
“The road is about 1.5 miles long and it must have the largest amount potholes along its length in the East Riding, I counted around 30."