The new playground is part of a $2.9 million revamp of the the popular tourist attraction, and work on the latest upgrade officially began on Monday.

The project, at the south-east corner of Lake Pertobe, will include a nine-metre climbing tower, water play area, swings, a cubby, sand play spaces and agility challenges.

It will also provide more shade and sheltered areas and include more all-abilities equipment.

The project is expected to take six months to complete, and while work is under way the playground area and adjacent barbecues will be fenced off.

Mayor Richard Ziegeler described Lake Pertobe as a "treasured space" which was created in the 1970s by a "visionary" council and its engineers.

Cr Ziegeler said in the decades since, continual improvements had been made, and the play space was now being transformed in a way that would help ensure it remained a drawcard for residents and visitors for decades to come.

Construction will be done by Landstruct which will use local contractors and materials where possible.

The council awarded the contract for the project in early July but at the time they warned the community work would be hampered by COVID-19.

The project was hit by delays because a number of components were coming from overseas suppliers, and production and export has been adversely impacted by the pandemic.

The $2.9 million Lake Pertobe upgrade is jointly funded by the Australian Government's Building Better Regions Fund and the city council.

As part of the major revamp project, more all-abilities paths have already been constructed, and plans to rebuild the ageing toilet block at McGennan car park entrance have been given the tick of approval.

The cost of replacing the "antiquated" toilet block with a new high-end facility had blown out by $300,000 to $800,000 it was revealed in October.

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