The redevelopment of Lake Burley Griffin's west basin would not go ahead without further community consultation under a successful Liberal government, leader Alistair Coe said.
He said the party would look first to upgrading existing town centres, before creating a "competing" precinct.
The Labor government completed a land swap this year to help deliver the redevelopment of the waterfront with hundreds of apartments, a public park and promenade.
The public spaces would be developed first under the government's plan, with housing to come in the second half of the decade.
Mr Coe said Labor's plan was misplaced and his party would give the community a chance for further consultation.
"Rather than establishing yet another competing precinct, now is the time consolidate, promote and properly maintain our city and other local centres," Mr Coe said.
"There are so many opportunities to build, refresh and renew the decaying corners of our city and local centres.
"With this approach, we can ensure the protection of our natural environment which Canberrans overwhelmingly enjoy and access."
The government's plan, which was substantially down-sized in August, had drawn criticism from community members, with group Lake Burley Griffin Guardians calling it a "crisis time" for the lake.
Labor secured the lakefront land through a controversial deal with the National Capital Authority to allow it to take control of Curtin's horse paddocks, to establish a new embassy precinct.
It too garnered opposition with an online petition signed more than 1200 times.
Community consultation for the project opened in May.
The Canberra Liberals said it would oppose the deal, and retain the inner-south paddocks as recreational space.
Member for Murrumbidgee Giulia Jones said the coronavirus pandemic had "reinforced just how precious open greenspace is for the mental health and wellbeing of the community."
"The Labor-Greens government underhandedly pushed through a bad deal for Canberra," she said.
"Only a Canberra Liberals government will rip up this bad deal and save the Curtin horse paddocks to protect this important green space."
