The Balonne Shire Council says it has secured funding for a flood levee for Bollon.
The council handed down its $26 million budget this week, which includes $2.7 million for the levee.
More than $2.1 million will come from State Government grants.
Mayor Donna Stewart says she hopes the flood mitigation work will be completed by the end of next year.
"The next time that there's a flood coming down Wallam Creek or Mungallala Creek they can rest assured that they're not going to get floodwater through their town and that would be a great relief I should imagine," she said.
"In the last four years they've had floodwater through the town on two occasions and as I said there's a long history of flooding with Bollon."
The council says it has had to make tough decisions to prevent a rate rise this year.
The council will not fill the vacant position of community development officer and has cancelled a sports incentive scheme.
Councillor Stewart says the loss of the officer will affect services but the savings were needed.
"That actually was a saving of a full 1 per cent from our rates," she said.
"The community, if they understand that we've met this challenge, they'll also need to understand that those services that were there before are no longer there.
"However, we will try our best."
© ABC 2014
17:20 EDT Dry and dusty cattle stations line the Duncan Road which weaves in and out of Western Australia and the Northern Territory.