It gets deluged so often that it is affectionately know as the Float-el — but now the iconic Fitzroy pub and at least 1,500 other properties around it might no longer need worry about flooding.

After 26 years of talk, a major infrastructure project to stop the south of the city of Rockhampton flooding, has all the funding it needs to go ahead.

The central Queensland city's mayor, Margaret Strelow, describes the South Rockhampton Flood Levee project as a major milestone.

"It's a very significant project," Councillor Strelow said.

"It will just change the face of Rockhampton and our economy as well.

"This means we can now protect 3,000 jobs, 1,500 parcels of land, the Bruce Highway and two state primary schools.

"This is fabulous news. It's been a long haul to get to this stage."

The need for the levee was first identified by Council back in 1992.

Suburbs in the south of the city routinely flood, with the latest events as recent as 2011, 2013 and 2017.

In four years alone, flooding led to $67 million worth of repair bills in the region.

Depot Hill during the 2011 floods. ( ABC Capricornia: Alice Roberts )

The massive embankment around the south of the city would have floodgates and valves that allow normal rainfall to drain away, but they would close up and block heavy floodwaters.

Yet the push to build the levee has been controversial and does not have the support of everybody.

There had been concerns that blocking floodwaters to growing suburbs like Allenstown and Depot Hill would just force water into other areas instead.

There were also concerns that the levee's $60 million price tag was not worth the savings to the community.

Federal Government commits last chunk of funding

The Council is paying for $10 million of the levee and, last year before the State election, the Labor Government pledged a $25 million contingent of Federal funding.

Now the Federal Government has offered up the last chunk of the pie.

The Swamp Store during the 2011 floods. It is no longer open today. ( ABC Capricornia: Alice Roberts )

The local member for Capricornia, Michelle Landry, admits she has had her concerns about the levee in the past.

"It's taken me a while to come to the conclusion to support this," she said.

"I've had intensive conversations with Council engineers.

"They've assured me it will not cause major concerns anywhere else. That flooding in other areas is minor."

Ms Landry said the Federal funding through the Regional Growth Fund is contingent on the Council submitting a good business case for the levee.

Councillor Strelow said they had that business case is ready to go.

"We know it is a project that will deliver and deliver time and time again," she said.

"The business case shows the levee will pay for itself in one significant event."

Councillor Strelow said the next task would be purchasing properties along the levee alignment.

She said two properties had been bought but that some property owners were still divided about it.