Measures to protect the quantity and quality of drinking water stocks around Selby have been imposed on Yorkshire Water after a public inquiry.
The company appealed against conditions imposed on licences granted by the Environment Agency to abstract water from boreholes at Eggborough, Brayton, Carlton, Cowick, Pollington and Heck.
Together the boreholes supply 50 million litres of drinking water a day to homes and businesses in Selby, Goole and parts of West Yorkshire.
Agency watchdogs wanted Yorkshire Water to monitor the quantity and quality of water being abstracted.
This information would then be used to review the licences in 2005, 10 years after they were granted, enabling them to check whether the underground aquifer was being over-used, and whether there had been any deterioration in the quality of water coming out of the ground.
After a five-day public inquiry in April last year, the inspector has now published his report, indicating his agreement with the Agency's view that monitoring of the boreholes is essential to protect the environment.
The inspector, Kenneth Smith, states: "I have no evidence that over-abstraction is not taking place; there is a significant amount of evidence that it is.
"The need for better and more consistent data on groundwater quality is acknowledged by both parties. I have no doubt that monitoring of this aquifer is necessary."
Yorkshire Water argued that water quality monitoring conditions should not be written-in to the licence, but negotiated through an operating agreement with the agency.
The inspector, however, ruled that the conditions should be in the licence and therefore legally enforceable.
The agency's regional water resources team leader, John Aldrick, said: "Over-abstracting from underground water can cause poor quality water to be drawn up from deep in the aquifer, and also draw in pollutants such as nitrates."
Over-abstraction could also cause environmental problems such as a decline in river flows or the drying out of wetlands.
Mr Aldrick said the inspector's decision was an important point of principle. It would allow the agency to protect the environment more effectively, and manage groundwater resources for the future.
A spokesman for Yorkshire Water - which has until June 11 to appeal - said it was still studying the implications of the inspector's report and recommendations.
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