The North Peninsula Recreation Service Area was established by Nikiski residents in 1974 to provide recreation services for the residents of Nikiski and Tyonek. An enclosed pool was built in the mid-1970s. Later, after Nikiski Elementary School closed in 2004, the building was repurposed as a recreation center for the community, providing meeting space and a gym for public use. Facilities in Nikiski consist of an enclosed swimming pool with waterslide, multipurpose fields, a covered natural ice rink, two running trails, skateboard park and two racquetball courts with exercise area, in addition to the community center. The major source of revenue to support these facilities is property taxes collected from the service area, with additional funding provided through user fees, state grants and interest earnings.