RESIDENTS of a New South Wales caravan park are celebrating after a decision not to close the flood-prone park.

Lismore Tourist Caravan Park in the State's north, which offers a mix of tourist and permanent sites, will instead undergo a revamp in a bid to prevent serious flooding.

The well-kept 75-site, two-and-a-half-star park – located just a stone's throw from the city centre – was given a reprieve by the local city council and will remain open for the foreseeable future.

Its future hung in the balance after storms hit the State's North Coast last year, forcing residents and tourists to risk their lives wading through raging chest-high floodwaters which badly damaged 55 caravans and nine cabins.

A lengthy report into the recovery efforts following the region's $41 million flood disaster recommended the tourist park be relocated but no suitable alternative site could be found.

It is understood the private lessee who runs the council-owned park may not renew the lease when it expires next year.

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