Progress on a Cork housing development has stalled after it was revealed by the local council that funds are not available to provide an adequate water supply to the site.

The Mallow homes cannot be sold until a system is established, which the council said will not be implemented this year.

Cork County Council had given assurances work would be undertaken at Box Cross during the spring.

It is understood this will now not go ahead.

However, the county council has blamed Mallow developer O'Flynn Construction for proceeding with the scheme despite being warned against it.

The council has made it clear it will not buy up the housing stock until water services are available.

O'Flynn built 12 affordable properties at Clonmore, but four of the homes will remain unoccupied until the council is satisfied an adequate water system is in place.

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County council officials have informed several other local developers not to progress with building projects until the problem is dealt with.

Assistant County Manager Tim Lucey told town councillors in Mallow that a resolution was 'imminent', despite difficulties in securing funding this year.

However, no direct pledge has been made by the county council to develop a multi-million euro water treatment plant.

Ballyviniter developer Michael Healy said he pulled out of a further Mallow scheme two years ago due to the lack of water supply, having already built 24 properties.

"A good water supply is extremely important for the area. The delay will make things more difficult for me in the future - lack of a water supply was why I stopped building. I thought that work would start on the new system this year," said Mr Healy.

W.K. O'Connor Ltd experienced a similar set-back, after construction 64 homes in the area, the developer was told by the county council that plans to development 136 more houses could not progress.

The council did give permission for developer Willie O'Connor to build his own water treatment plant, which was expected to result in a 'substantial' investment.

Mr O'Connor has since retracted the plans, citing the economic downturn for his decision.

(PR/JM)