E-COLI found in a water supply serving three homes in Lothersdale, could have a "devastating effect" on the rest of the village if it spreads, councillors have heard.

The pollution of the drinking water has already affected three homes, and the extent of the pollution is not yet known.

A small sewage treatment works unit at Hawshaw Cottage and Hawshaw Farm has been identified as a possible source of the contamination.

It is believed a water table from which three properties source their drinking water has been contaminated, but it is not clear how many other properties in Lothersdale rely on the same source.

Stephen Cohen, the clerk to Lothersdale Parish Council, said: "Lothersdale has no mains water and residents depend on bore holes and springs. Pollution of these supplies could have a devastating effect on the population.

"There have already been reports of stomach upsets and other illnesses. It would seem sensible to try to exclude any and all forms of contamination."

Coun Mark Wheeler said: "E-coli forms were found in the water as recently as August 9. The last report we had said that on the balance of probabilities the unit is the cause of the pollution.

"There is a local beck that runs very close to the soak away and we don't know to what extent the pollution has been spread."

The treatment works were the subject of a lengthy debate by Craven District Council's planning committee on Monday where retrospective plans were submitted for retention of the unit.

A report stated that the distribution system was built without planning permission in 1998. The plant deals with sewage from two properties at Hawshaw and pumps the treated effluent to a nearby soakaway.

But the Environment Agency has said the soakaway is "unsatisfactory" and it has already served notices on the two households to remedy the situation by building a new soakaway.

It is also reviewing the need to relocate the treatment plant, which neighbours claim is too close to their boreholes.

At the meeting, the Environment Agency was criticised for its slow response to the problem, which has been ongoing since the unit was built. It had promised a response about the effect of moving the unit by July 3 but it had still not arrived.

"Human health is involved here. They should have replied six weeks ago and that's no way to deal with matters as urgent as human health," said Coun John Sayer.

Coun Stephen Butcher added: "I think it is quite incredible that a public body can get away with postponing decisions."

The council's environmental protection unit has also taken enforcement action in respect of the pollution of ground water by the effluent from the tank.

However it stressed that the contamination of the drinking water was not necessarily from the effluent from the tank.

"If the Environment Agency enforce their notice, and the indications are that they will do so, the source of the pollution from the tank will be removed by fitting a sealed pipe. If it is this pollution that is reaching the drinking water supply, the supply should clear up naturally," it stated.

Planning permission would not affect any action taken by either the Environment Agency or the environmental health department, but councillors were still reluctant to approve the plans without first hearing the extent of the pollution.

Neighbour Terence McCallum told the meeting that since the tank had been installed he had had to remove 290 tonnes of polluted land to a licensed tip.

"The pollution has been counted for the past 11 months, and levels recorded have been above what the environmental labs can analyse. Even if it is stopped now we are looking at months and months of polluted water," he said.

Members voted to defer their decision until next month when a response from the Environment Agency was expected.