An official report by Southern Water into plans to build a multi-million pound sewage treatment works at Peacehaven brands the

company's preferred site "unacceptable".

The document, which outlines arguments against the Peacehaven site, was prepared in 1997 and submitted to a public inquiry two years later.

It has now resurfaced after extracts were anonymously dropped through the letter box of one of the leading campaigners against the scheme.

The £200 million works at Lower Hoddern Farm would treat waste water from Brighton and Hove before discharging it into the sea.

The choice of site has sparked a storm of protest. People who live nearby claim the plant would blight their homes.

Campaigner John Hodgson, 61, of Capel Avenue, Peacehaven, was surprised to find the report, submitted by Southern Water to a 1999/2000 public inquiry, championed the same arguments he is now putting forward.

He said: "I can't see how Southern Water can say this site is unacceptable and then say it is the best.

"Obviously someone close to Southern Water's policy-making decisions wanted to draw my attention to the report.

"Surely they can't go ahead with Peacehaven now."

The report, prepared by Terence O'Rourke consultants from Bournemouth, formed the basis of Southern Water's submission to the inquiry that the extension of the Portobello site on the beach at Telscombe Cliffs was its best option.

After a lengthy hearing, this plan was ruled out on the grounds it was environmentally damaging and the company was forced to look elsewhere.

All 66 original options were re-examined, along with others, before Southern Water came up with a shortlist of eight in 2002.

Two of these were Lower Hoddern Farm, north of Peacehaven Football Club, and Beacon Hill, Ovingdean, close to Roedean School.

Southern Water's 1997 report into the Ovingdean and Peacehaven options says: "The alternative of building a new works on greenfield sites outside areas of national landscape importance such as Beacon Hill, Ovingdean, and Lower Hoddern Farm were rejected on the grounds that the proposals would have an unacceptable impact upon the landscape, countryside and adjoining residential properties.

"The findings were discussed with the county and district councils together with the Environment Agency, the Countryside Commission and English Nature.

"Following this, Southern Water decided to proceed with the scheme for Portobello, having demonstrated there were no suitable alternative sites."

Geoff Loader, Southern Water's communications manager, said: "This was a report made in support of the Portobello application.

"We did not get the expansion of the Portobello site because the planning inspector ruled it was not suitable for an area of outstanding natural beauty.

"We had a rethink, examined the sites and then came down in favour of Peacehaven.

"We accept that no site is perfect and there will be difficulties with any site we choose.

"Many of the arguments against Peacehaven are still valid as in other sites.

"We have an obligation to build a modern sewage treatment works for Brighton and Hove.

"In six years, technology has moved on and we can make the site at Peacehaven more compact so it will not be seen."

A full planning application for the huge works, which will be mostly hidden underground, is expected shortly.