Intended to include the local area, Berrigan Shire pledged money for the tourism project earlier this year.
But with a grant for matching government funding being unsuccessful, council has been advised its funding would be returned.
New avenues to get the project up and running will continue to be investigated in the meantime, council CEO Karina Ewer confirmed.
The Murray River Adventure Trails project is being lead by Murray Regional Tourism.
It had made an application to the Victorian Government for for funding to commence the project planning.
“It is expected other funding opportunities will be applied for during this financial year,” Ms Ewer said in a report to council.
“Should that occur, another report will be brought to council for consideration.
“Nature-based tourism opportunities for all ages and abilities are limited in the Murray Region, despite the unique and enduring natural splendour it possesses.
“As part of the Murray Region Tourism Destination Management Plan (2012), which was Murray Regional Tourism commissioned, the Murray River Adventure Trail vision was first developed to create new opportunities.
“This is a high priority project aimed at attracting new visitors to new locations, increasing the length of stay and providing opportunities for adventure tourism operators, leading to new nature-based products and experiences.”
MRT has hoped to have planning approvals and detailed design work completed in early 2023, with construction at select sites to follow soon after.
By 2024 it is planned to have completed priority elements of stage one, from near Picnic Point in the Barmah National Park to Koondrook.
The disappointing news on funding is expected to delay the timelines.
When completed, the Murray River Adventure Trail is planned to include a series of connected walking, cycling and watercraft trails.
The proposal is for a long-distance nature-based experience that runs along the river and its banks from Lake Hume in the east, near Wodonga, to Mildura in the west.