The Lithgow City Council says its long term solution for a community affected by flooding is to buy the houses and demolish them.
A community meeting was held at the Vale of Clwydd on Saturday after at least four homes were flooded during storms last month.
The council says it does not actually own land in the area.
The Mayor Maree Statham says a motion will be put to council that acquiring the houses be considered.
"At the moment, those people do not wish to sell," she said.
"Long term, eventually we will acquire those, it might take 20 years, but long term if council can get funding to buy those homes that then will be put into like a canal and we will not have this trouble again."
Councillor Statham says council will now look to clear out a creek that is filled with blackberries and debris.
"Some of the people who live in the Vale think that if that particular area was cleared it would be less likely that there would be a huge build up of water to go through these couple of homes," she said.
"So we're going to look at trying to clear a small area of that waterway to release the build up of water in the event that we could get 150 mills in a very short period of time."
© ABC 2013
00:30 EDT A cyclone and potential cyclone are expected to bring heavy rain to north Queensland and the Gulf country in coming days.