Downpours in January this year left the Figtree Caravan Park with a damage bill of about $1 million as floodwater with contaminated sewage spilled over into the cabins.

The water rose so high on January 3 that it flooded in the inside of the cabins; at the lowest point about half-a-metre high, manager Donna Hassan said.

"We don't want to have to go through it again. It's been a long process," she said.

The ruined cabins have been removed and older ones relocated within the park to make way for the new ones to be placed away from the potential flood zone.

The relocated ones will be raised an extra metre in an attempt to avoid water spilling inside should there be another flood caused by a massive downpour.

Holidaymakers were forced to flee their accommodation in early January when a sudden deluge of rain flooded the park within 15 minutes with the drainage in Japan Street unable to cope.

It was a devastating blow to the park that was trying to recover from the impact of COVID-19 closures.

Less than a month later another sudden downpour turned Japan Street into a river and inundated the park again, but this time not as bad.

Flooding along Japan Street has been identified by the city council as a long-time issue and the city council is currently working on a fix but it could be some time off.

Ms Hassan said the park had hoped to get the new delux two-bedroom cabins in time for the September school holidays, but there has been delays sourcing building materials.

"We were trying to aim at the school holidays but unfortunately Jayco were a month behind," she said.

Ms Hassan said the shortage of materials and building supplies was hitting all sectors.

"We're building new deckings on the pet-friendly cabins. We've had to source timber from Terang because there is not enough timber here. There is a shortage," she said. Four of the cabins arrive next month and the rest in October.

Ms Hassan and her husband Scott moved from Melbourne to take on the managerial roles at the park and said the lockdowns had caused a lot of ups and downs.

"We've been through three since we've been here," she said.

"It's just the cancellation and refunding money. We've got to the point we don't take deposits anymore. It's less work."