Central Goldfields Shire received $1.2 million for the next stage of the project, after a joint agreement between the Federal and State Government has been finalised.

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Council will also contribute $600,000 to the project, with the tender to be advertised by council in February.

The final stage of the project, Stage Four, will be the construction of the Levee south of Pyrenees Highway.

Central Goldfields Shire Mayor Chris Meddows-Taylor said council was pleased to see finalisation of funding for Stage Four.

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"Stage Four is the next, final, critical step in supporting the Carisbrook community in managing flood mitigation," he said.

"We acknowledge that it has been a long process for the community of Carisbrook.

"We've continued to do what we can to drive this project forward and so we are delighted to see it move to the final stage.

"We thank the Federal and State Government for their support in delivering this critical project for Carisbrook."

The Carisbrook Levee project was designed by specialists Entura in response to major floods which occurred in 2010 and 2011.

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