The facility at the Duneske Sports and Leisure Centre in Cahir is popular with children from the town and surrounding areas.
However the increasing cost of public liability insurance has left the Cahir Development Association run playground facing an uncertain future.
Calls were made by Councillors Andy Moloney and Martin Lonergan at this months meeting of the Clonmel Borough District that the local authority would extend its own insurance to cover the Cahir playground.
However District Director Sinead Carr says this would not be possible.
Councillor Lonergan says the voluntary group running the amenity are finding it difficult to keep it open.