Griffith City Council says its staged approach to addressing flooding in Yenda and Yoogali will deliver protection to the communities as soon as possible.
A report on the drainage problems goes before Griffith City Council tonight.
The General Manager Brett Stonestreet says council is looking at what can realistically be achieved given the budgetary pressures.
"If you look at a full program of works, it's extensive and would be in the order of $5m," he said.
"Now realistically the council does not have the resources to fund that.
"What we do have, we will be manoeuvring with our priorities within our current budget and also next year's budget, to have the first couple of stages of that implemented which will make some difference to those communities."
Some Yenda residents want a full study of the entire Mirrool Creek catchment, taking in five local government areas.
Mr Stonestreet says a study is planned into Main Drain J over the next 12 to 18 months and a start on works in both villages is planned this financial year.
Mr Stonestreet says there has to be a balance between what is spent on reports and research by consultants into the problem and what actions will mitigate flooding.
"The Mirrool Creek flooding implication for that strategy will be undertaken," he said.
"We have got the grant money to do that, assisted by council, and that will be done over the next 12 to 18 months.
"So that is occurring and it will take into account the Mirrool Creek."
© ABC 2012
13:39 EST With 28mm already recorded in the rain gauge this month, Alice Springs is having its wettest May since 2004.