Port Macquarie-Hastings Council has previously stated it wouldn't be able to access NSW Government funding to address the lake's deterioration, or apply for a one-off licence to open it, until a new Coastal Management Plan is completed.

However, Mrs Williams said the NSW Government has plenty of funding available to support the waterway at Lake Cathie.

Mrs Williams said at the end of January she encouraged Port Macquarie-Hastings Council to consider applying for funding, after $5 million from the NSW Government was made available.

The funding would allow councils to take immediate action to ease the impact of bushfires on coastal waterways, including Lake Cathie.

Port Macquarie-Hastings Council will still need to complete a Review of Environmental Factors (REF) and complete a new Coastal Management Program if it proceeds with moves to open the lake.

Mrs Williams is urging council to take action quickly on the funding, as applications close on March 10.

"I am calling on Port Macquarie-Hastings Council to move very quickly to apply for NSW Government funding and get on with the job of upgrading their REF for the lake," she said.

Mrs Williams said council had already made a decision to allocate $1 million at the August 2019 council meeting.

The funding was in relation to undertaking investigative and/or construction works for tidal improvements in the estuarine system from the Ocean Drive bridge in a westerly direction.

"Which you would assume doesn't rely on them completing their Coastal Management Plan," she said.

Port Macquarie-Hastings Council didn't specify if it would apply for a share of the $5 million available from the NSW Government.

"Council has, and will continue to seek and apply for any available NSW Government funding relevant to works and actions council has resolved to undertake in respect to Lake Cathie, that we are eligible to apply for," council director Melissa Watkins said.

Mrs Williams said over the past eight years, the NSW Government has allocated more than $1.3 million to council for environmental, dredging and infrastructure for Lake Cathie.

"I will continue to advocate for council should it apply for this round of funding," she said.

The Bushfire Affected Coastal Waterways Program funding round is open for applications from councils until March 10 or until the $5 million allocation has been exhausted.

Activities eligible for funding include but are not limited to:

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