WEST Gippsland producers face ruin after weekend rain destroyed potato crops, pastures and livestock feed.

The township of Koo Wee Rup escaped inundation but properties 8km north at Pakenham South weren't so lucky.

Locals are blaming severe flooding on Wonthaggi desalination pipe construction near the McDonald drain and are pursuing a class action.

Two houses were inundated and up to 20 properties lost crops and pasture when water rushed through a hole in the 8m-high levy, cut to build the pipeline.

Locals said they warned the pipeline contractors of the flood risk last September. A meeting to discuss legal action will be held on Friday.

Trevor Price said he lost 16ha of lucerne, while neighbouring turf farms faced ruin in their peak growing season.

Mr Price was angry the desalination pipe contractors didn't replace the bank once construction finished.

"If it's a flood we will wear it, but this could have been avoided," Mr Price said.

At Cardinia, horse breeder Leigh Matthews lost thousands of dollars of equipment and hay when he was flooded.

At Cora Lynne, an estimated 80 per cent of the local potato crop was underwater after the Bunyip river broke its banks.

Potato grower George Lyneham said he was facing losses worth hundreds of thousands of dollars with 40ha of his crop underwater.