By 1951, the Maroochy council had allocated 30 sites for caravans at Cotton Tree, although this was a fairly small amount compared to the 450 tent sites on offer.

Over 1962/63, the Maroochy Shire Council undertook substantial improvements to the site, including the construction of a new amenities block and a more organised east-west grid arrangement of sites for caravans and tents. The scale of the upgrading was recognised in 1964, when Cotton Tree was rated as one of the top 'holiday parks' in Australia. More caravans were on-site, coupled with an increase in length of time stayed.

By 1978, there were 300 powered sites at Cotton Tree, the largest caravan park on the Sunshine Coast.