At present a large part of the commercial district of Bungendore is affected by flooding in the 1 in 100 year flood. In severe storms Turallo Creek and its tributaries can overtop their banks causing inundation across the floodplain and throughout the town. Halfway Creek and Millpost Creek influence this flooding due to backwater effects. In line with Yarrowlumla Council's Interim Flood Policy for the Village of Bungendore the long term goal of Council's is to minimise the impact of flooding of the town and work towards the development of a Floodplain Management Plan. Floodplain measures may be required to put a halt to the inundation of the town centre during significant rainfall and flooding events. This study forms the basis for a subsequent floodplain management plan.

Bungendore is located 20 km north east of Queanbeyan and over 40 km from Canberra, close to the state border with ACT. The village is situated at the confluence of two creeks – Turallo Creek and Halfway Creek, with the confluence of Turallo and Millpost Creek only 1 km downstream of the village. These creeks rise in the hills surrounding the village. Bungendore and its immediate environs are located in a belt of the Southern Tablelands that extends north to Lake George, south to the Turallo Range, east to the Great Dividing Range and to the Molonglo Range and the Lake George Range.