Plans for a massive new Reservoir could be shelved if Thames Water solves its leakage problems, the Environment Agency has claimed.

The Agency, which launched its Local Action Plan this week, has also vowed to investigate all future water resource requirements to see if there are alternatives to the huge reservoir project.

Thames Water is concerned about the population explosion in the South-East of England and believes a reservoir, which would be bigger than the size of Abingdon town centre, is a viable option open to the company.

It has made no secret that a planning application could be submitted - possibly next year - for such a reservoir to be built on land bordering Steventon, Drayton and East Hanney. Dr Brian Arkell, the Environment Agency's water resources planning manager, stressed he would be keeping an open mind about plans for the reservoir but added that the Agency will be considering all alternatives.

He pointed out that Thames Water has a leakage problem in the Thames Valley region and that would be one of the issues being looked at as part of the Local Action Plan, which covers the River Thames area between Eynsham and Benson. He said: "If the leakage problems can be sorted out, we can defer it (the reservoir plans) for a very long time or avoid it altogether. That's the intention."

However, Thames Water saidquickly dampened that idea, suggesting an ever-increasing population meant a reservoir could still be needed, even if leakage were considerably reduced.

Spokesman Cathy Little said: "We are going to need some other form of resource. We still think it (the Abingdon reservoir) is a very viable option."

If given the go-ahead, the reservoir project would be arguably the biggest in the whole of Europe.

Although a planning application has not yet been submitted, it is widely thought its size would be roughly equivalent to that of 16 football pitches - and 80ft deep.

The sheer scale of the project could mean it would take as long as 11 years to construct and then several more years before it is ready to be used. There have been calls for a train route to be constructed if the plans become reality, due to the huge effect it would have on the region's roads.

The Vale of White Horse District Council, Abingdon Town Council and the affected parish councils are opposed to the plans. Residents have also formed their own body, GARD (Group Against the Reservoir Development). However, Wantage Town Council has looked at the project favourably and, at a public meeting organised by Abingdon Town Council, public opinion was split, with many people liking the idea of leisure activities being supplied on the site.

Mr Brian Tonkin, clerk of Abingdon Town Council, said: "We are against it for much the same reasons as the Vale. It would be too large, they haven't proved it is needed and it would be a blot on the landscape.

"However, people at the public meeting seemed to be split 50-50."

Cllr Jim Moley said Wantage Town Council was generally in favour of the reservoir - partly because of the relief it would give to the other water sources in the area, including Letcombe Brook.

He added: "One of the issues is 'Could deliveries be done by rail?' Otherwise, it would wipe the roads out. Perhaps they could then leave the rail behind for, perhaps, passenger use."

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