The department's director-general, Warwick Watkins, on behalf of Minister Tony Kelly, announced the creation of the park on September 5 at a ceremony to dedicate the Cronulla Beaches National Surfing Reserve.

Mr Watkins also announced $100,000 funding to help the preparation of signage and the plan of management.

A report from the council's finance committee said the council's general manager, John Rayner, with the endorsement of then-Mayor David Redmond, wrote to the department indicating the council's intention to participate in the creation of the state park on certain conditions.

The report stated the proposed park would include all open space east of Mitchell Road (including Wanda Surf Club) and Sanderson Street, running south to the Prince Street intersection (including Elouera Surf Club clubhouse).

All the land east of Prince Street would be included, as would Dunningham Park (including North Cronulla Surf Club clubhouse).

Further south, the Cronulla Surf Lifesaving clubhouse, the sports complex and new restaurant site would be included.

At the southern end of the park, the council-owned portion of Oak Park (inclusive of the recent Breen acquisition) would also fall within the park.

''It should be noted many of the most significant public open-space areas in Cronulla are not council-owned but are, in fact, Crown reserves,'' the report stated.

Those areas include Wanda Reserve, Cronulla Park, the Esplanade, Shelly Park, part of Oak Park and Bass and Flinders Point.

The report said the council would only participate in the management plan process if the creation of the state park did not impact on existing uses or reservations, did not result in change of council ownership of land and did not change the council's current arrangements with the four surf clubs.

''In the spirit of co-operation, the department will also transfer a portion of Crown land within the site of the new restaurant at Cronulla Beach to enable the council to manage the site more efficiently,'' the report stated.