ある年のこと、大雨が切れめなく、ザアザアふったので、村は水びたしになってしまい、村人は、 とてもこまりました。
I don't understand the second part "村は水びたしになってしまい". I figured out that this means "The village ended up becoming dipped in water." But some transformations I don't get. For example, how and why the verb ひたす became びたし, which form I didn't manage to find in the internet at all. Also subsidiary verb しまう(which follows the TE-form of なる, and adds the nuance of "end up", "unfortunately") somehow became しまい.