On February 9, 1998, Intrawest announced the purchase of the majority of the Vernon Valley/Great Gorge ski area, including the Action Park property.

[4] After a massive overhaul, which included revamping rides and removing attractions deemed either outright unsafe or inappropriate relative to Intrawest's vision,[5] the water park was reopened as Mountain Creek Waterpark.

[12] In September 1989, GAR tried and failed to negotiate a deal with International Broadcasting Corporation that would result in the sale of Vernon Valley/Great Gorge, and Action Park, for $50 million.

[13][14][15] A few rides were closed and dismantled due to costly settlements and rising insurance premiums in the 1990s, and the park's attendance began to suffer as a recession early in that decade reduced the number of visitors.

[23] GAR filed for Chapter 11 protection that following March but remained optimistic that they could regain their financial footing "within a year.

[25] Despite expecting to reopen the next year, on June 25, 1997, GAR announced the cessation of all its operations, including Action Park.

[26] Following the demise of GAR in 1997, Praedium Recovery Fund purchased the Vernon Valley-Great Gorge resort, and Action Park, for $10 million.

The owners, aware of the image problems created during the Action Park era, sought to differentiate themselves from their predecessors.

Since Intrawest was a ski resort corporation, the water park would be leased out to Palace Entertainment after the first couple of years.