The government is making an extra $700,000 available for flood-affected businesses in Edgecumbe and the wider Bay of Plenty.
The Cabinet today agreed to the package, which would help about 100 local businesses.
Within the package, $200,000 would be available to help rural families with essential living costs and $250,000 would be earmarked for the Rural Support Trust's work to help farmers and growers assess crop damage.
The rest would go towards a disaster relief fund to support businesses.
Edgecumbe, which has about 1600 residents, was evacuated earlier this month when the Rangitāiki River burst its banks during heavy rainfall.
Most residents have since returned home but several hundred houses in the area remain seriously damaged.