Casterton famlies evacuated their homes in 1991 as the rising Glenelg River threatened the town.
More than 30 homes were left as floodwaters lapped within meters of buildings on the main street.
The flood danger was likely to remain for several days, receding across the week.
The last major flood in this area had been in 1983 and opinion was divided on which flood was worse.
Local policeman Constable Ian Lee said some believed the water level to be three inches deeper while others believed it to be three inches down.
Twenty-five years and mere weeks later, heavy rain has once again flooded the south-west town with residents now comparing water levels to those of the 2010 floods.