The local authority granted conditional permission in September last year but that decision has been objected to by three parties.
Under the plans for the Leisure Park at Carrowhugh in Greencastle there would be 37 mobile home pitches and 20 stopover areas for caravans or touring vehicles.
The plans also include two recreational buildings, two playing pitches and a playground area.
The applicant is Carrowhugh Investments Limited and they were awarded permission with a number of conditions including that an archeologist be employed to carry out pre-development testing at the site
The decision by the council to award permission is being contested by three parties with land adjacent to the proposed development.
The planning board says it will reveal its determination by the 12th of June this year.