Premier Roger Cook said the joint state and commonwealth disaster relief funds would ensure the necessary resources were available for recovery efforts after January's devastating floods.
Mr Cook and Emergency Services Minister Stephen Dawson on Sunday travelled to Fitzroy Crossing where some of the worst of the damage occurred, marking six months since the destruction.
Close to 40 homes and 40 businesses were destroyed across the region, with another 121 dwellings suffering some damage.
Flooding also caused significant damage to infrastructure and the Great Northern Highway, including a major bridge at Fitzroy Crossing.
"This money will go towards rebuilding both government-owned and privately owned homes," Mr Cook said.
"We want to get life back to normal as quickly as we can."
Mr Dawson said all flood victims had been moved out of emergency accommodation although some remained in temporary facilities.
"Thankfully, we've been told that no people will need to leave the community that they've lived in for many years," he said.
"The new houses that are being rebuilt will be built back higher."
The minister said rain in recent days had slowed reconstruction work but much had already been completed ahead of the next wet season.
He said the time frame for all the work to be finished "would take as long as it takes".
"We anticipate it will take possibly at least another two years," he said.
"The focus so far has been on cleaning out the houses that have been damaged and getting the tradespeople in to bring them up to scratch.
"The longer-term effort will be the rebuild and that will take most of the next two years."
Mr Cook said the once-in-100-year flood event was devastating for the Kimberley region but the state government was determined to ensure it came back better and stronger.
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