A LEGAL objection to the $16 million Bunnings development has been dropped but neighbouring businesses say their concerns have not receded.

Construction of the 8000sqm development at the corner of Canning and Condamine Sts is expected to begin in the next few months.

The development will inject millions of dollars into the community and deliver an expected 50 full-time jobs.

It is hoped it will be completed by mid-2018.

The project, approved by Southern Downs Regional Council in January, was appealed by a group of concerned local business people and residents on the basis the warehouse was to be built in a known flood zone, an area understood to be "off limits" to new developments.

Centre Point Mid-City Motor Inn owner Eddy Raets was part of that objection.

"We have owned the business for one year, and were aware of the flooding risk when we took over," Mr Raets said.

"And when we found out about the plans for the large block at our back fence we were concerned.

"We went along to the meetings and met with council and were committed to seeing the appeal through the first stage.

"But from there I think the threat of major expense knocked most people out."

Bunnings general manager property Andrew Marks this week said the company was satisfied with the outcome of court proceedings and was excited to start building a store in Warwick.

On the question of lessening a flooding impact on local businesses, Mr Marks said Bunnings had worked with local authorities and technical experts throughout the development application process.

"The development application took into account the findings and recommendations of the Jacobs Consulting report, which was commissioned by the council, which concluded that the development would have no significant effect on flooding," he said.

Mr Raets said there might be something positive to come from it all.

"Hopefully in the next 12 months we see a lot of construction workers needing a place to stay," he said.

"I can understand council's enthusiasm to approve the development, but why there?

"Put it somewhere else where it won't have as much of an impact."

Olsen's Home Timber and Hardware owner Alan Olsen said it was not Bunnings people were objecting to.

"It's never been about competition for me," Mr Olsen said.

"It wouldn't matter who was being allowed to build there.

"Anyone who has had to deal with our major floods will know that anything that might worsen the impact is a bad idea."

The original flood impact statement reported there would be minor changes in water depth at around 25-50mm and some changes in the energy of the water at the north-west, north-east and south-east corners of the site.

Steele's Bakery owner Brad Steele, whose business also sits inside the flood zone, said he was glad the development was finally going ahead.

"I love Bunnings," Mr Steele said.

"It's my favourite store, but the current Warwick one is a little cramped."