Plans to develop a car park near the Blue Pool Walk on Mangerton Road in Muckross are on hold pending legal advice.
The issue was raised at a recent meeting of Killarney Municipal District by councillor Michael Gleeson.
The council said it has engaged with the National Parks and Wildlife Service in relation to a portion of land required to facilitate parking and the NPWS is awaiting legal advice on the matter.
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Councillor Gleeson said parking facilities at the popular walking route are urgently needed and said the matter must remain on the agenda.