"We are making every effort to keep the park open, because a lot of people use it as a place of residence and tourists also use it," Walgett Shire Council administrator Hugh Percy said.

Mr Percy said the park trust would meet with the Department of Planning Infrastructure and Natural Resources (DIPNR) before the caravan park's future could be certified, but current developments pointed toward keeping it open.

"A whole upgrade of the park needs to happen first so it is brought up to certain regulations," he said.

Talk arose last month about the possibility of turning the caravan park into a recreational park, equipped with amenities.

Council opened the idea up to public consultation and the issue was discussed at the April Precinct Committee meeting, dividing committee members.

There were calls to turn the crown land into a skate park while other committee members were concerned for the welfare of the park's residents.

Lessee of the park Rod Hungerford said the process had been positive and remained confident the park would stay open.

"It all looks very positive if it eventuates which it should ... I've been in talks with Hugh (Percy) and Steve (McLean) and the newly formed Lightning Ridge Caravan Park Trust and it all looks pretty positive," he said.

Mr Hungerford said he still had the lease and has just re-signed a new one.

"I think it's (the park) an asset to the shire and the lease has been under negotiation for an extended period so it is good to have that resolved," he said.

For caravan park resident Eugenie Zsagony it was great news after she originally thought she would be kicked out of her home.

"First off we thought we were going to be out on the street," she said.

Eugenie has lived at the park with her husband Andre for seven years and said she had no other place to go.

"We moved to the park to get close to the doctors," she said.

Eugenie said residents at the park were all writing letters to the council to stop the caravan park being developed into a recreational area.

"My husband came home and told me everything is going to be alright - they can't put us out," she said.

Eugenie said having the matter resolved meant the speculation was over and she could return to life as normal.