Underground storage to help fix flooding issue in Warrnambool's Japan Street

More than $600,000 was set aside in 2021 for upgrades, and design work has now been completed, with the city council set to take the next steps.

The urgent need for upgrades came after two major downpours weeks apart in the summer of 2021 which flooded houses in the street, turning the footpath into a river and inundating the neighbouring holiday park.

The downpour had left the Figtree Caravan Park with a damage bill of about $1 million as floodwater with contaminated sewage spilled over into the cabins.

Eight were destroyed and had to be replaced.

The flooding also damaged the Brauerander Athletics Track which is currently in the process of a $2.6 million revamp.

The works include a whole new surface for the running track, and a major upgrade of the drainage which has been completed.

Wet weather has delayed the completion of the new surface with at least one school having to delay its planned athletics carnival by a few weeks.

Those overseeing the athletic track upgrade said the new drainage system held up well when Warrnambool was hit by a sudden downpour over a week ago, but the rain caused some flooding in the Japan Street area.

But works to alleviate the problem is on the horizon.

"Work so far on the Japan Street catchment has consisted of investigation, maintenance and engineering design," a council spokesman said.

"The design is now finalised with the next steps involving procurement and construction."

The council said the planned work would improve the flow of stormwater to the existing pump and there would also be a large water storage built under the pavement that will capture and slowly release large volumes of stormwater.

"This technique is working successfully elsewhere across the city including in Gibson Street," a council spokesman said.

"This work will mitigate flood impacts and it is planned that construction will start mid-year."

Former Brauer College principal Duncan Stalker, who was instrumental in getting the original athletics track, said wet weather had held up the work on completing the final layer of the new surface.

But he said the new drainage system worked well during the sudden downpour at the end of February.

"We're just in the hands of the weather."

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