FLOODWATERS have begun to retreat in the northern Victorian city of Echuca where dozens of homes were inundated.
About 200 homes in an older residential neighbourhood not protected by the town's levee bank have been affected by floodwaters, Campaspe Shire mayor Neil Pankhurst said.
The Campaspe River peaked in the town late on Sunday, but did not breach the levee bank.
It remains unclear how many of the homes affected by floodwaters have been inundated, Mr Pankhurst said.
The river remains high, retreating 90mm in the 15 hours after it peaked, he said.
"It is certainly not dropping quickly but it is good to see it go down," Mr Pankhurt said.
"The peak was reached last night, it was about 10.30pm (AEDT) or so, so the majority of damage will have occurred overnight.
"The river is obviously still up at a reasonably high level, it has peaked, but it is certainly not dropping away dramatically, so we need to wait till the water recedes out of the areas until we can clean-up."
Residents began assessing the damage on Monday morning as Prime Minister Julia Gillard toured the area.
Mr Pankhurst said away from the river, the town appeared no different to how it would on any other sunny summer day.
But he said the situation was very different in nearby Rochester, which remained isolated.
About 200 Rochester properties were inundated on Saturday.
Mr Pankhurst said 150 people, mainly from Rochester, remained in the town's evacuation centre.
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