Acting on a notice of motion from mayor Ryan Palmer, Port Stephens councillors resolved at their February 11 meeting to investigate the potential sporting and/or leisure uses for the site situated at the end of Elwin Road, known as Anderson Oval.

The cleared, low-lying land is owned by Port Stephens Council and is classified as community land.

"The site is prone to flooding and has high levels of mosquitoes. It is available for informal recreational purposes, it is approved as an on-lead dog exercise area, to date no approaches from local sporting clubs have been made," Cr Palmer said.

The area was originally set aside for a sporting facility [to complement the construction of the Lakeside shopping centre in the 1980s] but says tidy towns committee spokesperson David Davies, it was made redundant with the development of the Lakeside sporting complex.

"Since the committee's inception in 2001 we have been interested in constructing a recreational wetland there. When the sporting development failed to eventuate, the site became overgrown and subject to dumping of rubbish until the council erected gates," Mr Davies said.

"The area is low lying and subject to flooding and, we believe, would be far more useful as a wetland area."

Mr Davies said that the wetland concept was first raised with the council in the early 2000s when the committee formed a plan of action and completed an acid sulphate management plan.

"However, the lack of funding proved to be insurmountable at the time."

Plans were drawn up showing three large ponds and featuring native water plants, water energy disposal works, boardwalks, picnic tables and barbecue facilities.

Mr Davies said that the water could be sourced from the nearby Windeyers Creek.

"This would then attract water birds and the ponds could be filled with native fish which would help keep the mosquitoes away."

He estimated cost to be in excess of $100,000 and that government funding would be required.