Is there some kind of historical memory and folk wisdom that ensures that a community remembers about very extreme phenomena, such as catastrophic floods, and learns to establish new settlements in safer locations? We tested a unique set of empirical data on 1293 settlements founded in the course of nine centuries, during which time seven extreme floods occurred. For a period of one generation after each flood, new settlements appeared in safer places. However, respect for floods waned in the second generation and new settlements were established closer to the river. We conclude that flood memory depends on living witnesses, and fades away already within two generations. Historical memory is not sufficient to protect human settlements from the consequences of rare catastrophic floods.