RESIDENTS in the Queensland town of Laidley may be moved to higher ground after it was inundated for the second time in two years.

Shops and homes in low-lying Laidley were deluged with pungent mud as flooding caused by ex-tropical cyclone Oswald swept through the main street of town.

Lockyer Valley Regional Council estimates $150 million worth of local roads and infrastructure have been destroyed a second time, while the damage to washed away farms could add up to $500 million.

Mayor Steve Jones said up to 100 people living in Laidley's south may have to be relocated, copying a similar land swap put in place for nearby Grantham after the 2011 floods.