Campaigners say the River Wharfe faces long-term environmental damage if the authorities continue to grant licences for the extraction of water.
And the Environment Agency has been accused of giving in to Yorkshire Water's demands for more water.
After a consultation exercise with councils, environment campaigners and angling groups, Yorkshire Water has agreed to stop extracting water from the Wharfe at Lobwood, Bolton Abbey.
Three-year river water extraction licences granted by the Environment Agency to cope with the water shortage in 1995 will expire at the end of this month.
Yorkshire Water applied for new licences, lasting 15 years, but after objections from angling groups, environmental campaigners and Bradford Council, they have been restricted to five years.
Under the new licences which come into force in June, Yorkshire Water will continue to extract water from Ilkley and further downstream at Arthington.
Peter Bowler, from the campaign group Waterwatch, said anglers wanted Yorkshire Water's abstraction point moved as far downstream at Tadcaster.
He added: "The Environment Agency has crumbled and given in to Yorkshire Water's demands."
Brian Featherstone, president of the Ilkley and District Angling Club, said while he was happy that one abstraction point had been moved downstream where the water was deeper, the real solution lay in increased storage capacity.
"They have not got sufficient reservoir capacity to cater for the area. They are doing it on the cheap when the should be constructing fresh reservoirs. All the water that falls in winter goes to waste - it is abysmal," said Mr Featherstone.
Bradford Council said it was pleased that the Environment Agency had restricted the extraction licences to five years from the 15 applied for.
Councillor Dave Green, chairman of the regeneration committee said: "Although the Council is obviously concerned that the district should have an adequate water supply, it has never been satisfied that the best option is to take supplies from the Wharfe.
"A five-year licence will help to safeguard the long-term future of the river by allowing experts to monitor what effect the abstractions have on the environment and for alternative sources of supplies to be considered."
A spokesman for Yorkshire Water said: "Yorkshire Water spends more time and money monitoring the environmental sustainability of its clean and waste water activities than almost any other major water and sewerage company in England and Wales."
Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.
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