MADDENS Lawyers have announced they will not be pursuing a class action against SunWater on behalf of Jambin residents in relation to the operation of Callide Dam during the events surrounding Cyclone Marcia in February last year.

A representative for Maddens Lawyers told the Central Telegraph the decision to drop the case was made based on expert advice.

"We simply couldn't be sure that this case would end up in favour of those residents," said the representative.

Discussions are continuing in Banana Shire regarding the role Callide Dam should play in the Shire's water management strategy - in particular whether it be used primarily for flood mitigation rather than water storage.

Councillor Nev Ferrier voiced concerns from Jambin residents at the last council meeting that heavy rainfall had sent dam levels above 100% early last month, once again requiring a hurried release of water from the dam into Callide Creek.

The Department of Energy and Water Supply is currently studying whether it is feasible to operate the dam primarily for flood mitigation, with a call for public consultation expected to be issued in the second quarter of 2016.

An inquiry into the flooding conducted by the Emergency Management Inspector General Iain MacKenzie found that SunWater had correctly followed its own procedures when operating the dam last year, though residents claim those procedures were flawed.