CAIRNS' $35 million water park development could be delayed for months or even wiped off the board, with a nearby sugar mill primed to fight its construction.

Mulgrave Mill has lodged an appeal against the Adventure Waters park, arguing new traffic will create dangers near an existing cane train line and a proposed flood wall will push waters onto cane growing land.

Pictures: Cairns waterslide theme park

The mill's general manager, Peter Flanders, cited Cairns Regional Council officers' original recommendation to reject the development because of environmental, flooding and planning concerns.

Those recommendations were overruled when a majority of councillors voted to approve the development in October last year.

"We believe that development would be better off on a different site, especially given that it's a floodplain," Mr Flanders said.

"It will set a very bad precedent for the whole Barron Delta area."

Video: Adventure Waters promotional video

The 7ha development site, fronting the Captain Cook Highway at Smithfield, formerly housed the Vic Hislop Shark Show.

Adventure Waters chief executive Paul Freebody said he was disappointed and puzzled by the move, which was putting hundreds of construction jobs on the line.

"I've owned that property for three years and I've never seen a cane train on that section of track," Mr Freebody said.

He said the flood wall was being built mainly for insurance purposes, and would only be needed in a 1-in-100 year flood event.

"We ran the council's flood model and it was clearly reflected (the flood wall would cause) no adverse effect on any adjacent property."

Mr Freebody revealed he had hoped to "surprise Cairns" by opening the park in time for Christmas, four months ahead of a publicly-stated goal to be operating by next April".

"This will be tied up in court for three to six months, maybe 12," Mr Freebody said, adding the mill should expect costs of about $500,000 to engage the experts needed to mount a strong case.

Mr Flanders said the relevant section of rail track was used for about three weeks a year.

He said he had not spoken to the developers and was prepared to meet with them to discuss the appeal.

Asked if he would consider dropping the appeal in return for compensation, Mr Flanders said: "That's not something I've discussed with anybody; what we've said is that we are willing to talk (but) basically we are following the appeals process and it’s normal for there to be some sort of process of mediation."

The park will employ about 300 workers during construction and more than 200 staff after it opens.

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