Canadian park operator Intrawest purchased the park and neighboring Vernon Valley ski area in February 1998. The Waterworld section of Action Park was revamped and then reopened for the 1998 season as Mountain Creek. The owners, aware of the image problems created during the Action Park era, sought to differentiate themselves from their predecessors. By this time, Mountain Creek was no longer the state's largest water park, nor was it the draw that it was during its original heyday, as other water parks built around the region have since divided the market. Since Intrawest was a ski resort corporation, the water park would be leased out to Palace Entertainment after the first couple of years.