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Wikipedia:Manual of Style/Titles#Capitalization states, "However, for names of Wikipedia articles and of section headings in articles and pages, generally only the first word and all proper names are capitalized in titles.". Wikipedia:Article titles#Article title format states, "Use lowercase, except for proper names". This supposedly narrows the criteria to determining if a word is part of such a "proper noun" or named as such as provided by reliable sources as the common name. The word "flood", in this instance, is clearly not part of a proper noun. I would venture to offer that neither was "town".
I am always a proponent of using the common name when possible (exceptions for avoiding ambiguity) otherwise policy and title consistency should be followed. With all that, and no exceptions to the "generally" part, this article should be at Pittsburgh flood of 1936. This would follow policy and be consistent with the vast majority of like titles.
