Construction of a floodbank to protect low-lying areas of Milton will start this summer once final detailed design issues are completed.
The Clutha District Council has been planning the floodbank for more than a year to help prevent repeats of two major floods in the town in recent years.
It will be built at the southern end of the town by the east branch of the Tokomairiro River, which often overflows after heavy rain.
The last two major floods caused damage to several homes.
Council district assets manager Jules Witt said it was working with engineers and contractors to finalise "alignment issues" surrounding the floodbank.
The main issue was determining volumes associated with earthworks and fill that would be needed during construction.
The council already has Otago Regional Council consent for the floodbank and pump station.