A major flood study will be carried out across flood-prone South Warrnambool after the city council was successful in gaining $90,000 from the federal government.
The council is also hoping to secure even more money for the study from the state government for the study which will be done in conjunction with yet-to-be-appointed consultants.
Parts of South Warrnambool's new housing estate near the golf course were inundated by floodwaters from a swollen Merri River in October last year, with houses in the new Mervue Estate almost cut off by rising water.
That sparked a "small claim" to the council for compensation, the council said.
Plans for more housing in the area has prompted concerns from objectors who raised concerns about flooding, and the potential for earthworks to shift where floodwaters go.
There were calls earlier this year for a proposed new 20-lot subdivision near the golf course - near the Mervue Estate - to be scaled back because residents were concerned about the impact on nearby wetlands which are prone to flooding.
However, the proposal was approved by the council with those behind the development reassuring objectors the housing would be located above the one-in-100-year flood levels.
Floods in the mid 1940s - which were dubbed the one-in-100-year floods - inundated properties closer to the mouth of the Merri River.
The council said the new flood study would cover all of South Warrnambool.
"Of particular interest will be low lying areas that could become inundated under either climate change scenarios and/or flooding of the Merri River," the council said.
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"Council has also applied to the Victorian Government for a complementary grant and the outcome of this application is expected to be announced shortly.
"As with the north Warrnambool flood study from several years ago, this study will consider land and potentially properties and buildings that could become inundated under a range of flood scenarios."
The work will be used to inform planning scheme amendments in a bid to mitigate the impact of flooding, the council said.
The $90,000 cash boost from the Australian government was announced earlier this week as part of its risk and resilience grants program.
Member for Wannon Dan Tehan said the risk reduction and mitigation initiatives would better prepare communities and reduce the loss and suffering that was so often caused by natural disasters.
Glenelg Shire Council also received $20,000 for the Fitzroy Darlot Regional Flood Investigation Implementation Project.
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