The ban will come into effect on March 1, 2023, at Tullagh Bay in an attempt by the owner to eradicate dog mess.
The site’s owner said previous efforts to curb dog fouling had failed and there was now no option but to take “drastic action”.
Caravan owners have said the ban is unfair.
Many said they were selling or considering selling their caravans.
In a statement, Patterson Caravan Parks, the site owner, said dog fouling had been an ongoing issue which it had tried to tackle previously.
“Despite letters, signage and erection of dog litter boxes there is still an element who refuse to pick up after their dogs,” the company said.
“We appreciate there are more responsible dog owners than irresponsible ones on site but we feel that despite our best efforts we must take this drastic action before something worse happens.”
George Heath, from Derry, also owns a caravan at Tullagh.
For the past 10 years, he, his wife Josephine and family – including pets Storm and Shadow – have been holidaying at the site.“My wife recovered from cancer at the caravan, we have a very close emotional attachment to the caravan, to that area and to the people who were so kind to her while she was in recovery,” he said.
“The last thing we want to do is leave that site.”
Mr Heath said he had to now think about leaving.
“I personally would say this problem with dog fouling has been vastly exaggerated,” he said.
He added that he believed not all the canine-related issues were the fault of dogs owned by caravaners, as dogs from the local area have strayed onto the site before.
Mr Heath said he did not understand why the owner was not willing to work towards a less drastic resolution.
“Why have they ignored completely the proposals the dog owners have put forward?” he said.“We have offered to patrol the site and pick up, even that of strays who come onto the site.
“We have offered to contribute to making the site more dog secure but he has refused to speak to us, he has said no,” he said.
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