The new diving pool will not be open until next year.
Despite reports the pool would be ready by Christmas it may not open until May or June.
President of the Lightning Ridge Pool Association, Richard Mallouk, said it simply wasn't possible to finish the complex by the scheduled date in December.
"There is no way this pool will be open by Christmas," he said.
He blamed a lack of funding from council as the main reason work had come to a halt.
Walgett Shire Council has committed to pay the pool an annual subsidy of $200,000, to be paid each year in two instalments of $100,000, one in July and one in January.
This year Mr. Mallouk asked council to pay the second instalment, due in January 2006, in August, but council refused.
Last week an agreement was struck that the second instalment of the subsidy would be paid immediately, but Mr. Mallouk said it was too late and refused to accept the money.
"There's no point giving it to us now. Even if they give us the money now I have to book the builders. Do you think, with Christmas coming, anybody has time to do it? You can't just ring somebody up and tell them to come down straight away."
Council passed a resolution at last week's meeting to give the money to the association forthwith, but Mr Mallouk said it would not be used on the diving pool until next year.
Administrator Hugh Percy defended the decision not to pay the money in August.
"The policy all along has been to pay the money in two instalments. Before I could change that policy I needed to find out how much they wanted, why it was needed and what we were getting for it," he said.
He also said it was always his intention to pay the money before the due date in January.
"I said we could probably pay the money by September. Unfortunately I was off by one month, but it's still available three months in advance of the original agreement."
The diving pool project has stalled tantalisingly close to the finish line.
The main building has been completed and it is now only finishing touches that are required, such as water-proofing and painting the pool and making the concrete area around its edges non-slip.
However, even if it were possible to complete these tasks on time, there are other hurdles to overcome.
For instance, council still needs to provide access to hot water from the bore, which is needed to heat the pool.
The current estimate is that they won't be able to do this until early next year, though the administrator is trying to have that date brought forward.
"It's just some pipes," Mr Percy said, "it can't be that hard. We're not trying to build the Sydney Harbour Bridge, it's just getting water from one point to another."
President of the Swimming Club, Malcolm Holand, was distressed when he learned the pool wouldn't be open this year.
He has been anxiously waiting for the pool to open so that his daughter, Skye, a talented swimmer, can train in Lightning Ridge all year round.
The Holands have been making the long journey to Dubbo every week so Skye can train at the heated facility there.
"When the Olympic Pool closes down we want to be able to go straight into the new pool. Skye will be the right age for Beijing and if her times keep going the way they are, she'll get there, but she needs this pool."