The facility would include slides, climbing walls and diving areas. Construction south of the main beach is proposed.

Early plans will come before Orange City Council on Tuesday night, the Central Western Daily understands.

The facility would be privately operated. The application describes it as "similar" to the Bathurst Aqua Park at Chifley Dam.

Lake Canobolas is within the Cabonne Council area. Orange City Council is seeking to endorse the project. A timeline for construction is yet to be announced.

"Council has been approached by an operator of inflatable recreation parks to establish an Aqua Park for commercial use," the report says.

"The size and scale of the park would be designed to fit with in the available area and ensure that required safety depths are met."

About $1.3 million has been spent renovating Lake Canobolas in the previous 12 months.

A new playground, renewed beach areas, amenities block, upgraded entry to the pumphouse, road and footpath works, and a boat launching area have been completed.

A floating boardwalk is also set to be installed.