Murchison SES unit controller Stephen Addison said a levee bank had been erected along the middle of Stephenson St and had so far been effective in holding off water from reaching the main street businesses.
Water that was reaching the south part of the levee was being pumped back over the levee and into the river.
"From what I can see it is really working well," Mr Addison said.
The south-east end of Stevenson St and the same end of Watson St have seen some flooding, while Willoughby St is also under water.
A levee has also been built along the south end of Robinson St because a depression at the south end of the street is prone to flooding.
Sandbags are still being filled in Murchison, with the Australian Defence Force still in town helping fill them.
Mr Addison said 20 tonne of sand was still available for sandbags and 4000 more bags were to come to the town.
Mr Addison said emergency services were to come to the town.
"We are prioritise the east side of town to make sure there are enough," Mr Addison said.
"We are making sure the ones that need bags are getting them."
"At this stage I don't think there is any cause for alarm."
"Ninety-five per cent of the town is fine. It is the five per cent over the river (that are flooded)."
Emergency services have also prioritised stacking sandbags in a circle shape around the drains that are pumping stations for sewage.
Water is not over the top of the bridge over the Goulburn River at the town, but the bridge has been closed off because the road surface has deteriorated on the road in the lead-up to the eastern side of the bridge.
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