Thomas H Halton Park at Croudace Bay has re-opened after a $5.4 million transformation, which includes the city's biggest playground outside Speers Point Park.

Dozens of descendants of Thomas H Halton - a former town clerk instrumental in saving the foreshore tract as a public reserve - were on hand for the opening on Saturday, marking the end of a 12-month construction project that included a new skate park, fenced dog exercise area, hit-ball wall and half basketball court, exercise equipment, accessible playground and an amenities block.

The project hit a slight stumbling block during the tender stage, with the national timber shortage skyrocketing prices and resulting in council refusing all offers and instead negotiating with another supplier to build the equipment with timber laminate.

The new 10,000sqm fenced playground features a 15m-long pirate ship, with slides, rope tunnels and climbing platforms, as well as a shaded area for younger children, three separate swing sets, and picnic shelters with barbecues.

Lake Macquarie council section manager community assets Brendan Callander said a water-play area with three water pumps and multiple flow paths was designed for children to explore and interact.

"A big part of this playground's design was the natural feel of it," he said.

"There are lots of rocks, trees and grassy areas, and places for children of all abilities to have some fun and adventure and test their limits safely."

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Thomas H Halton's granddaughter Lesa Kearney said her descendent, who died in 1983 aged 86, would have been delighted to see the park today.

"He would have loved seeing all the people using it because he was a people person," she said. "It was very special for him to be acknowledged."

The NSW Government contributed $200,000 to the all-abilities playground through its Everyone Can Play grant program. Council funded the remainder.

The opening comes after Newcastle council announced on Thursday it would spend $650,000 to upgrade four playground this year.

Work has commenced on a full playground replacement at McCauley Park in Tarro and a complete overhaul of playground equipment at Minmi's McInnes Reserve will begin next month.

The neighbourhood playground at Bernborough Avenue in Maryland and Kotara Park will also have their equipment upgraded in coming months.

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