Residents of the four most vulnerable flood-affected areas in Gippsland were last night being urged to evacuate rather than risk being stranded by waters expected to reach 1.6 metres above normal levels.

Authorities were suggesting evacuations as Gippsland entered its fourth day of flooding after the heaviest rainfalls in almost 40 years.

©Craig Sillitoe
Not going anywhere: Scott Elliott and partner Ashlee Holmes survey the water surrounding their Newry home.

State Emergency Service duty officer Tim Wiebusch said rising waters were expected to peak before midnight in four districts - Paradise Beach, Golden Beach, Raymond Island and Burrabogie Island.

The nearest towns are Paynesville and Loch Sport.

"Flooding is expected in some parts ... tonight, and if people don't leave soon, then they could be stuck there for (up to three) days," Mr Wiebusch said.

"This is the last opportunity to evacuate. Residents should heed the advice of rescue workers and go."

The flooding centred on the Gippsland Lakes, where the flows from up to seven rivers were converging and running into a king tide driven last night by the second full moon of the month.

"There are now more than 54,000 sandbags in place, and 400 rescue workers on standby to help people affected by flooding," Mr Wiebusch said.

Floodwaters at Lakes Entrance had reached 1.4 metres and were likely to reach 1.6 metres overnight.

Gippsland Lakes locals blame the flooding on delays in work to deepen the lakes' exit channel, which they claim is now too shallow.

They were worried that more reports of trouble in Lakes Entrance would cost the town tourism dollars over the school holidays.

Meanwhile, residents in other parts of Gippsland were still battling the overflow spilling from Glenmaggie Weir as they mopped up after the flooding, and insurance companies were gearing up to count the cost to Gippsland.

Until the flooding emergency is over, it will be impossible to gauge the total damage bill, but insurance assessors were at the scene last night and the first assessments are expected to be filed late today, an Insurance Council of Australia spokesman said.

The State Government yesterday announced a $500,000 relief package for farmers to bring in emergency fodder.

This follows reports of the loss of 260 beef cows from up to 50 farms.

The tiny township of Newry was buzzing with bulldozers, Country Fire Authority trucks and workers as skips were filled with ruined carpets, mattresses and household items.

Farm equipment, refrigerators, gas bottles and huge tree stumps had been washed downstream by the surging Macalister River.

A spokesman for Southern Rural Water said 13,050 megalitres a day was spilling from Glenmaggie Weir.

A megalitre is equivalent to a 25-metre pool.