The Central Highlands Mayor says State Government funding cuts have stopped flood prevention work in the central Queensland town of Emerald.
Suncorp says it will not write any new insurance policies until mitigation work is carried out in the town, that was flooded in 2008 and again last year.
Mayor Peter Maguire says SunWater still has not repaired flood damaged roads at Fairbairn Dam and the authority has been told to stop work on a drain in Emerald.
"One of the things people wanted addressed during the flood commission was some work be done on the LN1 drain here in Emerald, which is a SunWater responsibility," he said.
"They went ahead and started that project some months ago.
"Well the advice I got last week was that they have been told to cease that work.
"Certainly one of the contractors involved has also advised me of that, that they've been told to cease the work at this stage."
© ABC 2012
15:56 EST Cattle stations south of Alice Springs are reporting large rainfalls on their properties.