Villagers are asking the Atomic Energy Authority (UKAEA) to hand over one of its disused sites to extend a Millennium park.
The derelict pumping station in Sutton Courtenay has been out of use for six years. It had been used to pump and treat water from the River Thames before supplying it to the Harwell Laboratories.
UKAEA plans to decommission several of its redundant sites. Now some residents feel the area, which backs on to All Saints' Lane, should be handed over to the village.
Robert Moss, of Harwell Road, said: "The pumping station site is adjacent to the Hanson Millennium Park. It seems obvious to me that they should be merged to make a bigger park. It could be very attractive. This land is being wasted."
But councillors say they are concerned about a large lake, pits and areas of quicksand on the site. Concerns have also been raised about potential contamination on the site from nuclear materials.
Michael Jenkins, district councillor for Sutton Courtenay, said: "Hanson managers have made preliminary approaches to UKAEA, but there continue to be concerns about safety, and management responsibilities for the site.
"Everyone knows there is a lake and lots of land which could be put to good use. But this is a complicated issue."
Nick Hance, UKAEA spokesman, said: "We have no further requirement for the site. But that does not mean we can just give it away.
"First we need to make sure it is in a suitable condition to be sold on. But disposal must be of benefit to the taxpayer as this is a Government-owned site."
Story date: Saturday 23 October
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