Mayor Paul Antonio says even though there was no loss of life in the town during the 2011 flood, "we certainly had real problems around inundation of houses."
Farming properties were also badly affected by the flood.
"We know water didn't get away in Oakey," the mayor explains. "I think there are a number of factors people really need to have a hard look at. Maybe the impact of the railway line. The impact of the bypass."
"There's not a lot of history left around there. The last serious flood in Oakey was way back in the mid 80s. A lot of knowledge has been lost."
Councillor Antonio hopes the study, and the implementation of the monitoring system, will be completed during 2013.
The flood warning system is expected to cost $510,000. The state government will contribute $204,000 through the Local Government Grants and Subsidies Program Flood Response.
Retention basins in Toowoomba
Councillor Antonio says one of the big issues in Toowoomba city is houses and businesses built close to the creeks.
The plan is to reduce the amount of water that flows in the streams by extending the network of water retention basins.
"All of that has been forward budgeted without any additional levy on anybody. We certainly need to make sure that in Toowoomba we have an early warning system as well as a flood mitigation system."
Paul Antonio says the region is "reasonably" well prepared for floods. "We've learned a lot from the event of 2011," he says.
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