Under the agreement, which was signed late last year, the City of Cockburn will write off $3.3 million in outstanding capital value when it closes the 26-year-old centre later this year to coincide with the opening of Cockburn ARC.
The City has allocated $200,000 to decommission the recreation centre before it is handed over to the Education Department.
It will be used by Lakeland Senior High School to accommodate growing student numbers.
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While the aquatic facilities will be removed, the school will have access to basketball courts, a gymnasium, offices and extra car parking.
An Education Department spokeswoman said a feasibility study was conducted to look at different uses for the building.
“There are no immediate plans to develop it so a wall will be built to securely and safely separate the decommissioned area from the school,” the spokeswoman said.
“We’ll discuss the options for the building with the school community when there are plans in place to develop it.”