SunWater says Paradise Dam near Bundaberg in southern Queensland is safe, despite concerns of scouring after the floods.
The dam is being fixed after January's record flood, where it is thought the damage bill is more than $2 million.
Crews spent the weekend clearing debris near the floodgates.
SunWater will also release about 100,000 megalitres of water this week for more repairs and has advised some areas will experience minor flooding.
Chief executive Peter Boettcher says power was also cut at the dam which has made repairs difficult.
"We have identified a scourer hole downstream of the dam just on the left embankment side," he said.
"Now unfortunately all of that is under water right now, so in a sense we are working in the dark by reducing the water level.
"We will be able to dry that section out so we can have a look and see how big is that scourer hole [is] so we can make repairs but the dam itself is fine."
Bundaberg Mayor Mal Forman says SunWater will release 23,000 megalitres of water per day for the next four to five days.
"SunWater is liaising with downstream residents and relevant stakeholders, they've been notifying those people themselves," he said.
"We only received this advice on the weekend and I haven't heard from them what roads ... will be affected but they are advising those residents themselves."
© ABC 2013
11:27 EST Darwin sweltered through its second hottest September day on record yesterday, with another stinker on the cards again today.