The land identified for lease by the consortium is located next door to the tennis club and is presently maintained by Federation Council.

The six-member consortium is seeking in-principle support from council to lease the land before completing a management plan and submitting a development application.

The council started the ball rolling on Tuesday by calling for community input towards leasing the land.

Consortium member John Fraser, who attended the council meeting, said he was confident the council was behind the plan.

"We can easily go where other land is available, but we think it will enhance this area," he said.

"We don't want to complete a business plan until we know council is supportive.

"We're happy with comments made at the meeting today and we understand it is going to be subject to some stringent conditions.

"We haven't been deterred at this point and accept the process that has to happen."

The proposed fun park will include water slides and splash park with the latter feature under consideration for the pending Corowa swimming pool upgrade.

Council general manager Chris Gillard said it shouldn't be "frightened" of competition.

"What it should be concerned about is hearing from the community and secondly making sure the required business plan and development applications are in place," he said.

"There are some significant hurdles to get over to ensure any works in the flood plain don't impact the tennis courts or other activities in the area.

"There will be some significant costs required on behalf of the applicant."

Administrator Mike Eden said he supported a "whole of precinct approach" incorporating the pool, caravan park and tennis club.

"We should be looking at it in a positive manner," he said.

A dog off-leash park also exists in the area with a walking track to the Murray River to be created at a future date.

Councillors elected in September will decide whether a 25 or 50 metre pool is built.