Secret talks between and inside the two councils about building the park on land including the Weatherall Masonry, fish farm and circus sites have been taking place for more than a year.

But Wodonga has opted out of the deal which would have seen both councils jointly purchase land parcels required with the change of heart coming since local government elections were held in Wodonga last year.

It is also a major blow for the Two Cities, One Community initiative after the project had been identified for funding under the Albury-Wodonga Regional Deal.

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A major tourist park has been a long-term aim of Albury councillor Murray King, who said demand for top quality visitor facilities had never been stronger as the nation emerged from the COVID-19 pandemic and overseas travel remained off the radar at least for another year.

"I'm livid," he said.

"I'm also appalled this decision has been made after we signed a Two Cities, One Community memorandum of understanding with Wodonga where all councillors from both sides sat down, including some of the existing Wodonga councillors, and agreed to act with honesty, integrity and care for eachother.

"Wodonga is no longer holding up its end of the bargain."

Wodonga Council was approached for comment by The Border Mail.

But a spokeswoman said its "hand were tied" due to confidential resolutions it had passed on the matter.

The motion passed by Albury Council on Monday night states: "(That Albury) notes with disappointment the advice from (Wodonga Council) and not take up the call options as outlined in the strategic land acquisition, Riverside Experiences report; advocates for this land to be purchased with federal and or state funding as a component of the Albury-Wodonga Regional Deal; and strongly encourages (Wodonga) to enable the strategic land acquisition and development opportunities outlined in accordance with the Gateway Island Master Plan, Wodonga Planning Scheme, Two Cities One Community action plan together with joint feasibility study and joint due diligence undertaken to date."

Albury and Wodonga signed up to Two Cities, One Community initiative in 2017 with a cross-border aquatics management deal with Aligned Leisure one of the first major actions.

In more recent times, Albury has come to the party with funding to complete stages of a regional cricket training centre based at Birallee Park in Wodonga.

Cr King said the tourist park was a major missed opportunity.

"Since the lockdowns ended Victoria and southern NSW are bursting at the seams with visitors at caravan parks," he said.

"The joint is exploding and there are more caravans being sold than cars.

"But there is a new Wodonga Council and they obviously didn't think proceeding with it was a good idea.

"We've gone 100 per cent at it and is out of the box because it was an investment we were prepared to make in another state that would benefit both cities."

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