Officials said Central Hudson contractors were performing routine maintenance replacing gas lines, when they struck a 3/4-inch gas service line, and the dig caused a fire and explosion around 12:15 p.m.
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The company cut electric and natural gas service to the immediate area at 1:30 p.m., and it remained out Thursday evening.
Authorities said 10 civilians and five first responders were injured.
The civilians include eight adults and two children, while the first responders include one firefighter and four police officers.
The injuries to the first responders were not believed to be life-threatening.
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Three civilians were airlifted to Westchester Medical Center, including one child and two adults.
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The other victims were taken to local hospitals by ambulance.
New York Gov. Kathy Hochul released a statement that she deployed state emergency services personnel to assist in the response.
"As the situation develops, I urge all New Yorkers to follow the direction of law enforcement and other first responders working to keep the community safe," Hochul said. "I join all New Yorkers in praying for the Village of Wappingers Falls."
The building that was impacted by the explosion was a multi-family brick structure with a basement and two floors.
Officials say the gas infrastructure in some of the homes date back to the 1930s or 1940s.
They say the status of all victims being out of the rubble is still under investigation, but no deaths have been reported so far.