Swansea Channel has still not been dredged a year on from the announcement of funding to combat sand silting.
The NSW government announced on July 13 last year that Swansea would be a priority project in a $6.2 million dredging program across the state.
But Swansea MP Yasmin Catley said the channel remained in a "dire state" a year on, impacting the ability of boaties to access Lake Macquarie.
Transport for NSW released a statement in December last year saying removal of enough sand from the channel to fill 20 Olympic-sized swimming pools would start in the new year once planning approvals were completed and a contractor was appointed.
"We expect dredging can get underway in the first half of 2022," acting executive director NSW Maritime Darren Wood said at the time.
"We understand that maintaining ocean access through the narrow passage is of major importance.
"It will not only deliver a boost for locals and tourists, it will also help the state's post-lockdown economic recovery."
From the start of the year to the end of May, Lake Macquarie Marine Rescue has performed 299 assists of vessels in the lake, including 39 that had become grounded.
The number of grounded vessels that occurred during autumn increased from 14 last year to 21 this year.
Ms Catley said the situation had affected the success of local sailing events like the Heaven Can Wait Charity Sailing Regatta, which took place in February.
Toronto Royal Motor Yacht Club, which runs the regatta, has also been vocal about a permanent solution for the lake entrance, with vice commodore Mel Steiner saying it is stopping large vessel operators from even trying to enter due to the risk.
"A year has now passed and the only entry and exit point into the largest salt water lake in the Southern Hemisphere remains un-dredged," Ms Catley said.
"Swansea Channel is in a dire state and local and visiting boaties are unable to travel through the Lake for recreation and boating events, which hinders our region's economy.
'"The dredging of Swansea Channel is well and truly overdue. It is time for the Government to deliver this crucial dredging program."
Ms Catley has previously suggested using sand dredged from the channel to replenish eroded beaches such as Redhead, which was smashed by storms earlier this year.
The Herald has contacted Transport for NSW for comment.