The news follows several challenges faced by the fundraising committee for the project which began with the collapse of the agricultural building constructed to house the proposed pool in May 2018.

This has been followed by ongoing legal procedures for compensation and ever-increasing costs.

Robertson and District Swimming Pool Association (RADSPA) spokesman Don Ferguson said the committee also continued to be burdened with ongoing costs associated with the halted project.

Mr Ferguson said that RADSPA had continued to pursue claims before two insurance companies.

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"We were close to receiving offers of settlement before the [Covid] lock down," he said.

"However, insurance claims if reasonably settled will not supply sufficient cash to rebuild."

The volunteer community group had spent about 10 years raising funds for the Aquatic Centre project.

Funding for the project had included $220,000 raise by the community plus a NSW ClubGrants of $350,000, National Stronger Regional Fund dollar/dollar Grant of $542,000 and a Veolia Mulwaree Trust grant for $32,400.

Work began on the facility, on land leased from Robertson Bowling Club, in late 2017.

This had included the clearing of land, formation of a driveway, diversion of a stream, completion of all plumbing installations, and deposits and outright purchases of equipment and materials to be ready for inclusion to the project.

The concrete to form the base of the pool had been completed and work was well underway on the installation of a 40m x 17.5m agricultural building to house the the 25 metre, four-lane above-ground heated swimming pool and gymnasium proposed for the site.

However,on May 18, 2018 the building collapsed. The cause was subject to a Safe Work NSW investigation and is part of the undisclosed details of ongoing legal proceedings.

Mr Ferguson said the project was 70 per cent completed when the collapse occurred.

This had exhausted a significant portion of funds raised by RADSPA for the project.

He said the remainder of funds had been set aside to cover ongoing expenses associated with the failed project as required by Safe Work NSW and public liability insurance.

"This includes security fencing, insurance, lease payments for the land and continued maintenance of the site," he said.

"We even had to pay for a forensic engineer.

"It took more than 12 months for an insurance company inspection of the site before we could get permission to carry out demolition of the building."

While legal proceedings continue, the cost of completing the centre are also rising.

Mr Ferguson said that at this stage the cost of completing the facility would be in excess of $2million.

"Since the collapse on May 18, 2018 we have all witnessed grant and funding diversion to serious and more deserving emergencies by both Commonwealth and State governments," he said.

"Our advisors believe it will be long term planning before funding opens for non-essential community facilities like this."

Mr Ferguson said that the hope of the committee was that work initially carried out for an aquatic centre could instead be used as the base for another sport or community facility for the district.

He said the building assets completed to date could be used to develop an essential community asset with support of the community and grants from government sources.

"We want to make sure we give something to the community," he said.

"We understand the community is disappointed, but hope people understand the circumstances.

"Everyone on this committee is committed to the community. We want to do what we can for the community, that is why we volunteer."

Mr Ferguson said more would be known about the future potential of the site when the insurance claims are settled.