South Gippsland Shire Council has put thousands of property owners on notice, with a major update to the planning scheme's flood controls now on public exhibition and community feedback being sought until 6 July 2026. And judging by the reaction already emerging from affected communities, Council faces some hard questions ahead.
Draft Amendment C135 proposes to implement ten flood studies across catchments throughout the shire, introducing for the first time a Floodway Overlay alongside updates to the existing Land Subject to Inundation Overlay. Around 2,600 properties across 62 localities are affected in some way.
Some of the biggest changes for the immediate Prom Coast community are in Foster, where properties along Bennison Creek and Stockyard Creek will receive new flood controls, and along the broader Tarwin River catchment. Other significantly affected areas include Tarwin Lower, Sandy Point, Waratah Bay, Venus Bay, Port Franklin, Toora, Agnes, Welshpool and Port Welshpool.
The amendment introduces three distinct controls. The updated LSIO Schedule 1 applies to land at direct risk of inundation during a 1% Annual Exceedance Probability flood event, or what was previously known as the one-in-100-year flood. A new LSIO Schedule 2 applies to properties not directly at flood risk but whose road access would be cut off during such an event. The Floodway Overlay applies to the highest-risk areas, where flood depths exceed 0.3 metres — the recognised safety threshold at which floodwaters become unsafe for small vehicles and pedestrians.
For many residents, the letters arriving in their letterboxes have raised more questions than answers. One Foster resident speaking to the Prom Coast News said the information provided was difficult to navigate. "I think the information provided is very confusing. What overlay are you now? And what are you going to be? It’s very unclear."
On local social media, the reaction has been immediate and pointed. Toora resident Stan Dw said the change from Land Subject to Inundation Overlay to Floodway Overlay was concerning. "This will effectively reduce property and land value overnight and negatively impact our ability to use our land and to build anything on it." He also raised questions about the accuracy of the mapping. "It's a bit confusing because the areas that were flooded a few years ago haven't been added, but other areas where it doesn't flood got added."
Insurance was a recurring concern, while Jan Best asked whether affected properties might at least see a reduction in rates. Stan Dw was not optimistic: "They just keep going up while we have to jump through more and more hoops just to be able to farm our own land."
Council planning staff have emphasised that for most affected landowners, the new controls will not prevent building, but will require a planning permit for new development. "It's more about triggering a permit so that we can consider flood risk, not necessarily saying what's going to be prohibited," South Gippsland Shire Council’s Manager Planning and Building Services Mick Moore said, "In most cases it'll be more about how you build things, where you build them, and what they are."
There are, however, significant implications for some landowners. Subdivision creating new lots entirely within the Floodway Overlay will not be supported, reflecting advice Council and the West Gippsland Catchment Management Authority say they have been providing informally for years.
On property values, Council's FAQ notes that "it is not possible to reliably predict any impact" and points out that flood risks have not changed. Previous independent planning panels across Bass Coast, Mornington Peninsula, Moreland and Melbourne found no evidence that flood overlays correlate with property value impacts, and concluded such amendments have net community benefit.
Not everyone will find that reassurance sufficient. The experience of Loch Sport in neighbouring Wellington Shire, where revised flood overlay policies from 2024 led to documented valuation decreases, a decline in property sales, and land rendered effectively unbuildable overnight, illustrates why many South Gippsland property owners are watching these changes with anxiety. Wellington Shire Council was sufficiently concerned to write formally to the Valuer-General Victoria in August 2025 seeking clarification on substantial valuation decreases for 279 affected properties.
Community information sessions are being held across the shire through June. Port Welshpool and Welshpool on Monday 1 June, Leongatha on Friday 5 June, Foster on Wednesday 7 June, Tarwin Lower and Sandy Point on Friday 12 June, and Toora on Monday 15 June. One-on-one booking slots are available at each session, and private appointments can be arranged by calling Council on 03 5662 9200 or emailing council@southgippsland.vic.gov.au.
Written submissions must be received by 5pm on Monday 6 July 2026. The submission portal and full amendment documents, including interactive mapping that allows residents to search their own address, are available at southgippsland.vic.gov.au/C135. Cara Schultz
