Five properties wiped out during the April super storm have been bought by Dungog Shire Council, with the help of the state government.
Council and the government bought the privately-owned properties at the northern end of Dowling Street, in the centre of Dungog, for a total of $278,878.
Mayor Harold Johnston said council contributed $92,958 to the cost and the state chipped in $2 for every dollar the shire stumped up, under the Just Terms Compensation Act.
He said council’s share came from one of the shire’s reserve funds and was not borrowed money.
Cr Johnston said on Wednesday the fate of the land was undecided, but he predicted any future uses would involve little infrastructure.
“These houses were 100 years old and it would be extremely unlikely that council would be happy with people building there again,” he said.
“Council and the government is sharing their burden.
“It’s [the land owners’] prime asset. Council would be very loathe to put a private structure on it, but we don’t know [what will happen with the land]. It will depend on the flood study.”
It comes almost 18 months after last year’s natural disaster, which battered Dungog and Maitland.