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THREE holiday parks in the NSW Great Lakes area will undergo major improvements after the state government allocated $2.55 million for the work.

They include Jimmy's Beach caravan park which was forced to close last year because of substandard electrics.

Lands Minister Tony Kelly announced the funding during a visit to the park, which will receive the lion's share of the money.

"A total of $1 million has been allocated to Jimmy’s Beach for a range of improvements that will facilitate re-opening the park," he said.

Work will include building three new cabins and refurbishing four existing ones; playground upgrading; garden, road and drain construction; water and sewerage works, and electrical work.

Hawks Nest Holiday Park will receive $850,000 to build two new cabins and to refurbish four existing ones; playground upgrading; garden, road and drain construction; water and sewerage works, and electrical work.

Seal Rocks Holiday Park has been allocated $700,000 to construct three new cabins and refurbish four existing ones; upgrade playgrounds; construct gardens, roads and drains; carry out water and sewerage works, and carry out electrical work.

The announcement follows the recent transfer of the parks from Great Lakes Council to the Land and Property Management Authority.

Mr Kelly said this management transfer followed a negotiated agreement between the two parties and covers holiday parks at Forster, Tuncurry, Hawks Nest, Seal Rocks and Jimmy’s Beach.

"The funding is the form of low interest loans to the new trust boards tasked with managing the parks," he said.

"A total of $8.8 million has been allocated towards improvements at Crown land caravan parks this financial year."

Mid North Coast Accommodation Trust's Ian Ferguson said no date had been fixed for reopening Jimmy's Beach caravan park but it was a priority.

Commenting on upgrades at the three parks, he added: "We’re not creating ‘McMansions. It's about giving people the option of pitching a tent right through to the air-conditioned comfort of a cabin."