Metropolitan Redevelopment Authority (MRA) acting chief executive Ryan Keys said they tested the market for interest from developers and investors, but they were looking at alternative sites.
Hotelier Stewart Cranswick is considering the site of a former water park in Ascot for a proposed hotel and whitewater park, but was yet to find out if the site was big enough.
Mr Cranswick said distance was the major barrier for the Champion Lakes site whereas the old Ascot Water Playground site, near Ascot Racecourse, was just off Great Eastern Highway. The proposed whitewater park would cost about $10 million, with a $9 million hotel alongside.
The park would include facilities for international and national competitions, canoeing and kayaking, whitewater rafting, function rooms, kids boogie-boarding and possibly wave-riders.
Armadale MLA Tony Buti said he was disappointed with the MRA’s decision.
‘It would seem sensible that the park be located at Champion Lakes; it would fit in well with the world-class rowing and canoeing facilities we already have there,’ Dr Buti said.
In 2010, Canning MHR Don Randall made an election commitment of $5 million towards the $15 million Champion Lakes plan.
Ascot Kayak Club has put up its hand to have the park built near its club.