Nuisance

You and your neighbors could sue, but the judge doesn't know what exactly you want other than giving you money. It's better your dispute to be resolved in a settlement conference before going to trial. Your primary goal is to make the developer to dig a run-off ditch to redirect the rainwater away. That plus some money for lawn and fences and attorney fee.

Decreasing in housing value is speculative, you can ask for it, but it is an outside shot.

http://en.wikipedia.org/wiki/Nuisance

A property lawyer or environmental lawyer would be able to help you.