Australia: Flood alert remains

The worst appears over but northern NSW remained on alert as the weather bureau and emergency services warned that the eastern states' floods crisis will continue.

The Bureau of Meteorology said new areas of NSW, Victoria and Queensland would be hit as river peaks from flood-hit areas moved downstream.

It said floods were set to peak in the northern NSW township of Gunnedah yesterday.

Flooding was predicted to continue at Wee Waa, to the north of Gunnedah.

Southwest of Gunnedah, Coonamble was also braced for a flood peak today.

Dubbo appears to have escaped the threat of severe flooding. But areas south of the township, including Forbes, and downstream of Wagga Wagga in the state's south, were also warned to be on alert.

Evacuated residents from the Eugowra, near Forbes in the NSW central west, returned to their homes yesterday.

A NSW emergency service spokeswoman said crews were hopeful the worst was over.

In the central Queensland town of Theodore, floodwaters were receding although they were on their way downstream.

The 500-strong township appears to have been spared from what would have been the second major flood this year.

Theodore's Banana Shire mayor John Hooper said the river only broke its bank at an industrial estate. But a nearby coal mine and low-lying cotton farms weren't so lucky.

Cockatoo Coal's mine at Baralaba, about 100km north of Theodore, has been closed since December 3, with its only access bridge inundated.

Cotton crops along the Dawson River have been devastated for the second time this year.

President of the Dawson Valley cotton growers' association Fleur Anderson said they're assessing the damage with 1200 hectares affected.

"It is just another blow to the community," she said.

In central Victoria, there were fears 400 homes in a housing estate at Shepparton would be isolated after the Goulburn River peaked at noon.

But an access road remained open and officials believed the threat had eased.

- AAP