Bayside suburbs around Melbourne's CBD as well as riverfront properties in at least five areas in Victoria are at risk to exposure of rising and severe flood waters, a coastal flooding report released on Monday by the Municipal Association of Victoria revealed.

Funded by federal, state and local governments, the report showed that damages brought by flood waters, from only around $3 million a year in 2011, could jump to as much as $20 million by 2100 as flood waters topple out from Southbank, along the Yarra River.

"Residents need to be aware that the risks are increasing," Arron Wood from Melbourne City Council was quoted by ABC News.

Climate change forecast showed sea-level could rise as much as 0.8 metres with rainfall intensity also spiking 32 per cent by 2100.

Mr Wood said that based from the report, severe flood waters due to climate change will impact sea levels around Port Philip Bay and other coastal areas. Businesses such as tourism will be greatly distorted.

Steps and measures are currently discussed to protect parts of the city, including raising levees, upgrading drainage and installing flood warning systems.

"We're also talking with Melbourne Water, City West Water and the Victorian Government about making sure that we've got a coordinated approach to adapting to these different levels of inundation," he said.

"I think it's vital that communities understand there are big impacts into the future," Bill McArthur, Municipal Association of Victoria president, said.

"We need to start the conversations now."