Moira Shire Council will investigate building levees around Numurkah as part of a flood plain study for the town.
The council received $120,000 from the State Government this week to investigate options for protecting the town from future floods.
Homes and properties in Numurkah were inundated in March when the Broken Creek burst its banks after heavy rain.
The shire's flood recovery manager, David Booth, says the study will also look at early warning systems for the town.
"You've got infrastructure solutions and you've got improved emergency management practices," he said.
"If you combine the two you give yourself [the] best opportunity to protect townships from future flood impact.
"You won't be able to stop floods in the future, they will always happen.
"The challenge for government and authorities is to try and mitigate damage that is caused by floods when they come."
© ABC 2012
11:55 EST New South Wales residents living near swollen waterways have been advised to stock up on essentials as forecasters warn flooding could isolate parts of the state later this week.