The Water Palace experienced continuous financial difficulties, and finally closed in 1996.[1] Throughout its lifespan, the Water Palace was renowned for poor health and safety, and several accidents were publicised in the local press,[2] although these were not the direct reasons for its closure.
After closure, the site was sold for nearly £24m.[3] It was then redeveloped in the late 1990s to become the Colonnades Leisure Park.