A Tea Gardens community group will seek an urgent meeting with Environment Minister Penny Sharpe to seek assistance clearing the Myall River's natural channel.
In addition to becoming a navigational hazard, the area's marine life has been decimated by low salinity.
With the $8million local oyster industry on its knees due to viruses and low salinity, day trippers have become an increasingly vital part of the town's economy.
About 250 people travel between Nelson Bay and Tea Gardens each day, a figure that increases to 800 during peak holiday season.
But Noel Gaunt, who operates the Y-Knot ferry service, has warned that the economic lifeline may be about to end due to the increasingly treacherous conditions at the river's entrance.
Earlier this year he warned the ferry service would have to stop if the situation did not improve. He said on Wednesday that nothing had occurred to change his view.
"The situation is diabolical," Mr Gaunt said.
"There is a red marker at the western end of Hawks Nest Bay and we are not able to go within 20 metres of it. You can see the bottom as we come past and that has only happened in the last two months.
"Crunch time is coming, whether it's August, September or October, a day is going to come when we won't be able to go over there. In fact, we've looked at doing a run from Shoal Bay, Nelson Bay, and Soldiers Point to stay away from the river."
The entrance was dredged in 2015 and again in 2019. It is not due to be dredged again until 2025.
The Myall River Action Group is lobbying to have the natural entrance formally declared as a navigational channel in an effort to attract ongoing maintenance funding.
The river's western, man-made entrance is presently designated as the river's navigational channel, however, studies have shown it does not flush as effectively as the natural entrance.
Myall River Action Group spokesman Gordon Grainger said recent readings from under the Tea Gardens Bridge recorded salinity at 16 parts per thousand - healthy estuarine water is normally about 30 parts per thousand.
"We are hoping the minister will listen to our case for the sake of the environment and our community," he said.
"The river is the lifeblood of this community. The only long-term solution to the river's problems is to restore the natural eastern entrance,"
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