Wagga City Council general manager Peter Thompson has denied a media report that North Wagga Residents Association was proceeding with legal action against the council over flood protection.
"We have said to the North Wagga residents that we can see some benefits if they can see something that we have done improperly; we maintain the process has been transparent," Mr Thompson said.
"If there's a mistake then a review by a third party is a benefit to everyone."
Association treasurerFiona Ziff said the group had not served a lawsuit and that the council's call for a feasibility study would give North Wagga greater control over flood mitigation.
"Things are where they need to be...I do thank Mr Thompson and the mayor for taking the lead," she said.
Wagga City Council plans to investigate levee improvements at North Wagga on the back of community concerns about inadequate flood protection.
This week councillors agreed to send a letter to the state's Minister for Energy and Environment Matthew Kean requesting that the state government finance a feasibility study for a one-in-100-year levee for the suburb.
"If approved this would be done alongside the feasibility studies already underway," a Wagga City Council spokesperson said.