Davenport, Iowa, has flooded several times in the past, and it is flooded again as I write this. Davenport is not noteworthy in this, as many of the communities along the Mississippi river are facing floods, but it is noteworthy in being the largest city on the Mississippi river that is without major flood defenses. Instead, Davenport has strategically managed its floodplains, placing less vulnerable properties there, such as parking lots and parkland. Isolated properties on the plain have their own flood walls to keep water out, but these aren't designed to force the river to stay within its banks; floodwaters flow around these islands of dry space. Residences and businesses are not located in the floodplain at all, and therefor don't need to be protected by permanent levees. The city doesn't escape flooding entirely unscathed, but the costs of cleaning up parking lots and parks every seven or eight years are far less than those of paying every year to maintain a system of dikes and levees.
Consider photos at http://quadcityimages.blogspot.com/2008/04/2008-flood-update-monday-afternoon.html
What makes me happy about all of this is that the strategy is working, and other flood-prone communities may take notice of Davenport's success and alter their own flood management strategies. Mother Nature always wins; work with her, not against her.
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