Hundreds have been evacuated from Rockhampton but many are refusing to leave Australian military aircraft are ferrying more supplies to a flood-hit city in Queensland as river levels continue to rise.
The Fitzroy River at Rockhampton is due to peak early on Wednesday, leading to the evacuation of hundreds of homes.
Floods across Queensland have closed roads and airports, devastated industry and claimed at least three lives.
US Secretary of State Hillary Clinton has offered assistance to Australia - a close ally.
"On behalf of President (Barack) Obama and the people of the United States, I offer my condolences for the loss of life and damage in Queensland caused by the recent flooding," she said.
"Our embassy in Canberra is monitoring the situation and has been in contact with Australian authorities. Australia is an important partner and close friend of the United States and we stand ready to provide assistance."
More than 20 towns across a huge swathe of Queensland have been cut off or flooded, and more than 200,000 people affected.
Nick Bryant RockhamptonBryant's Australia“There will be ramifications across Australia, of course, way beyond the flood zone. It will mean increased grocery prices at supermarkets and lost revenues from the mining sector - estimated at A$100 million a day - which will have knock-on effect of the state and federal coffers”
State Premier Anna Bligh has warned that the floods may not recede for weeks.
Australian Prime Minister Julia Gillard described the situation as "a major natural disaster" and said recovery would take "a significant amount of time".
In Rockhampton - which has a population of of about 77,000 - floodwaters are filled with sewage and debris and swarms of mosquitoes are adding to residents' problems, Australian media reported.
More than 500 homes in the city have been evacuated but some residents are refusing to leave, Australian broadcaster ABC reported.
A major highway north of the city is still open but officials say it could be impassable within hours.
With Rockhampton's airport closed, supplies are being delivered to the city by military helicopters and barges.
With the flood peak still several hours away and many residents refusing to leave, emergency services are preparing to rescue those in trouble.
Emergency teams have set up a "tactical medical centre" with dozens of tents at the small airport in the coal port of Gladstone, about 100km (60 miles) south of Rockhampton.
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