DUNMORE station's replacement could also be called Dunmore, with two alternatives failing to meet requirements.
Liberal Member for Kiama Gareth Ward put forward a notice of motion on Shell Cove Station in September, noting work had started on the $39 million project and condemning the former Labor government for failing to deliver it during its term.
But Labor Member for Shellharbour Anna Watson said Mr Ward was forced to remove the name Shell Cove from the motion before it was debated on Thursday.
"This is the latest humiliation for Gareth Ward after the Geographic Names Board of NSW rejected the proposal to rename the new station to Shell Cove in December," she said.
"This is what happens when arrogance takes over from common sense."
The name Shell Cove was first proposed in February last year after representations from the tourism sector.
However, the Geographical Names Board said the name could not be used because the station was not located in the suburb of Shell Cove.
Ms Watson said the name for the station remained unclear and called on the government to put forward alternatives.
"I challenge the Government to publicly release the proposal for the name of the station so genuine consultation can take place in the Shellharbour City community," she said.
Mr Ward said the name was up to the board to decide and it had not yet considered the matter.
"Anna Watson has been arguing for Flinders but that has been deemed not appropriate as well - clearly her ignorance has no bounds," he said.
"I'm not going to get bogged down fighting about a name - it's not the important issue."
He said names had to be directly linked with their location, which could make Dunmore the likely outcome.
Debate on the motion was interrupted for further discussion at a later date.