Studies have found it would be more effective to focus on flood warning and response systems than mitigation in Skipton, west of Ballarat.
The findings of the Glenelg Hopkins Catchment Management Authority (CMA) studies will be presented to Skipton residents on Monday.
The town was flooded in 2010 and 2011, with the damage bill reaching about $3.8 million.
The CMA's statutory water manager, Brad Henderson, says a number of mitigation measures were considered but they are not the best options.
"You know, unfortunately there's not a silver bullet for flooding in Skipton," he said.
"Really the studies just highlighted that when it floods there, it's a really high-hazard scenario and the best thing you can do, or the most cost-effective thing we can do, bang for buck, is warning and response."
© ABC 2013
16:38 EST Organisers of the Mulga Bill Quick Shear at Yeoval, in Central West New South Wales on the weekend, were a bit nervous about the weather on Saturday morning; there'd been good rain on Friday night and they didn't have a 'Plan B' if things didn't clear up.