Minister Peter Walsh announced the funding for the plan that includes selecting and designing the most effective works to lessen the impact of floods as well as upgrade local flood gauges.

Mr Walsh said it was important to be better prepared for future flood events.

“The Victorian Coalition government is committed to helping rural and regional communities rebuild from the 2010 and 2011 floods," he said.

Floods hit Rochester three times during the end of 2010 and the start of 2011.

More than 1000 properties were affected by the three major floods that were some of the biggest in the town's history.

Mr Walsh said Rochester's 2011 flood management plan identified a range of preliminary options to reduce the impact of floods including levees, floodways, and waterway works.

"It is important we do the proper detailed planning and design before works begin, to ensure the Rochester community receives the best possible result," he said.

"Flood gauges will be upgraded and work will start on selecting and designing the most effective flood mitigation works for the town."

Member for Rodney Paul Weller said the Rochester community had been very proactive in recovering from the floods.

"It is very good to see and the state government is very keen to do all we can to prepare for future floods, which will happen," he said.

"There is a community committee that has been involved in the proposals, research and studies. This is a good result for their hard work.

"I am very pleased to be a member of a government that is contributing significantly to the protection of Rochester from further flood events."

The state government is providing $276,720 from the FloodZoom program, $119,280 is coming from the federal government’s  Natural Disaster Resilience Grants Scheme and $114,000 from Campaspe Shire Council.