The Naracoorte Lucindale Council will consult the community about the project to upgrade Naracoorte's stormwater drainage.
The consultation will include details such as the cost of the work and disruptions that may occur.
Mayor Erika Vickery says the project will upgrade old and damaged infrastructure and help to protect the Naracoorte CBD from flooding.
"Particularly to a number of low-lying areas which are in the CBD area and every time we do have a heavy inundation of rain there are certain areas of the CBD that do flood across the roads because the drainage system at the moment is unable to cope with them," she said.
"It is a major project and there are some parts of our stormwater system that are really quite ageing and are collapsing, so it's quite important that we move ahead with this as part of our asset management."
© ABC 2013
11:26 EDT Scorching temperatures are finally starting to drop over Australia's interior as Santa delivers cloud and rain for Christmas.