Premier Campbell Newman has announced $5 million in Royalties for Regions funding for flood mitigation work in Emerald in central Queensland.
Mr Newman says levees and culverts will be installed and the opening under the town's rail bridge will be enlarged to improve the flow of floodwaters.
He says Emerald was severely affected by floods in 2008 and 2010.
"It is designed around trying to protect the town as this first stage in impacts from the 2008 flood and it's believed that maybe 800 to 900 properties would be protected if you had a similar flood as they had in 2008," he said.
Central Highlands Mayor Peter Maguire says it is the first stage of a flood mitigation strategy and council consultants are looking at other measures to be rolled out later.
"Not all these mitigation measures ... will be acceptable, I suspect, to all the community," he said.
"However, we're still to go out and talk to the community about those measures but this project will start assisting the community to try and reduce the impacts on houses and businesses indeed."