Current planning schemes in Australia identify areas that are potentially flood liable. This identification of flood liable land is based on flood height levels over time. Throughout New South Wales this measure of flood affectation is determined by three classifications. These classifications also influence the development of residential property within these flood areas. Prospective purchasers are advised of this flood zoning when a full title search is carried out. However, as these properties are often located on the flood plain, and not within sight of the river, flooding can appear visually remote to the uninformed buyer. This study will analyse residential house sales in flood prone areas and compare price movements of these houses to similar houses in immediate adjoining areas that are not effected by flooding. The analysis will cover the period of 1984 to 1998. This period includes the last major floods in Sydney during 1988. This study period will determine what impact a major flood has on residential housing prices and whether this effect is on-going or decreases the longer the area is flood free.