Damaged levee banks in Maitland, Horseshoe Bend and Pitnacree will undergo temporary repairs as the state government continues to assess the damage from the July flood.
The NSW Department of Planning and Environment has confirmed plans for the "temporary emergency repairs" has begun and other critical sites "will be repaired as a priority".
There is a lengthy process ahead to permanently fix the damage.
The department said the repairs would not begin until the new financial year.
"The investigation and design work needed for the complex, permanent repairs is expected to be complete by June 2023," a department spokeswoman said.
"We are continuing to assess the damage from the most recent flood event and any further repairs will also be covered by the scheme's insurance."
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Another $50 million from the Hunter Valley Flood Mitigation Scheme's insurance policy has been made available.
This is on top of the $21.5 million announced in the NSW State Budget, which will be allocated over the next eight years and used for maintenance and future flood preparations.
Watch: Flooding in July, 2022
Minister for Lands and Water Kevin Anderson said the money would pay to remediate about five kilometres of riverbank across 14 sites on the Hunter, Paterson and Williams River.
Maitland MP Jenny Aitchison wrote to NSW Premier Dominic Perrottet and other relevant ministers last month, raising concerns about the strength of parts of the levee system amid predictions of another La Nina season.
She told them the city had "been lucky not to have a Bulga or Broke style" flood and warned it could happen here if the levee banks weren't fixed immediately.
Ms Aitchison called for the repairs to be made immediately.
Ms Aitchison questioned how the permanent repairs would be paid for and where that money would come from.
She has been working closely with the Hunter Valley Flood Mitigation Scheme but has not received any correspondence from the government about its plans.
"There are peoples lives, and their livelihoods, at risk if we don't get flood mitigation right," she said.
"I want to make sure that people are getting accurate information and that there is a sense of comfort that the government will do the right thing."
Mr Anderson said the flood mitigation infrastructure remained strong and had reduced the risk to life and property.
"This scheme plays a vital role in minimising the impact of flooding for more than 250,000 people across the Hunter including Maitland, Raymond Terrace, Singleton and Aberdeen," he said.
Residents should report damage to the levee system here.
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