The Government has rejected Thames Water’s plans to build a £1bn Reservoir near Abingdon, it emerged today.

But Thames Water could come forward in the future with proposals for a smaller reservoir.

Campaigners GARD (The Group Against Reservoir Development) issued a statement saying Thames Water’s proposals have been rejected for the “immediate future”.

The group’s announcement follows a public inquiry last summer into the water company’s proposals Brigadier Nick Thompson, a spokesman for GARD, said: “The Secretary of State for Defra has now published the report by Inspector Wendy Burden on the Thames Water draft Water Resources Plan following the public inquiry last year.

“She has accepted the Inspector’s conclusions which were that the plan did not meet the statutory requirements under the Water Industry Act, and that the measures Thames Water proposed to adopt were not fully justified by the evidence.”

Mr Thompson added: “GARD concludes from this that the reservoir proposal is therefore ruled out for the immediate future.

“The Secretary of State’s ruling means that Thames Water must now investigate fully and objectively several alternative long-term water resource proposals, including a Severn-Thames transfer, which they failed to consider properly in the preparation of their 2,000-page plan.”

At the public inquiry last summer GARD claimed that the need for the reservoir had not been proved.

Yesterday the Vale of White Horse District Council said it welcomed the decision to axe plans to build the reservoir between Drayton, Steventon and East Hanney.

Tony de Vere, leader of the council, said: “We are delighted with this decision.

“We have always argued that the case for this reservoir has not been made and that it is not needed.

“Local residents were very worried about the impact of such a large reservoir and we share their relief that the plan has been axed.

“We have worked closely with local parish councils and residents to fight the plan.”

A spokesman for Defra said: “The Secretary of State has accepted all the recommendations included in the planning inspector’s report on the inquiry into Thames Water’s water resources management plan.

“The Secretary of State proposes to direct Thames Water to undertake further work prior to publication of its plan.

“This will include removal of the current proposal for a reservoir at Abingdon from the preferred programme, and further work to develop a new preferred programme, which may include a smaller reservoir as a feasible option, to ensure the security of supply in the London and South West Oxfordshire water resources zones.”

Simon Evans, a spokesman for Thames Water, said the company was preparing a statement.