The Water Palace experienced continuous financial difficulties and finally closed in 1996. The Palace itself was renowned for poor health and safety and several accidents were publicised in local press, however this was not the main reason for the closing of the park.
It featured water slides, a large jacuzzi area and a wave pool using an artificial wave making machine.
The Water Palace was replaced with The Colonnades leisure park in the late 1990s, featuring City Limits; an entertainment centre, with a restaurant, bar, arcade and bowling facilities.