This article analyzes the consequences of the French Flood Prevention Action Programme, PAPI, which is designed to reduce flood risks at the basin level by reallocating risks from the most vulnerable to the least vulnerable areas. These programmes have led local water managers to introduce compensation payments for people -mostly farmers- who are more exposed to floods after implementation of the programme. The introduction of such programmes has thus shifted the risk burden from the national level (through the national compensation system for natural disasters) to the local level, and especially to the local water manager. This article outlines the results of an exhaustive survey of all PAPI basins and shows that the new flood management programme leads to non-sustainable policy options. Several solutions involving local water managers, insurance companies and public authorities are discussed, which may result in more balanced and more sustainable management of flood risks.