Worthing has failed to meet European seawater safety standards for the first time in almost ten years.
Water off the resort has fallen short of the "excellent" standard required to win the beach a Blue Flag award for next year.
The resort may also fail a less stringent "satisfactory" test based on the number of bacteria present.
It is the first time the town has fallen short of the mark on both criteria since 1994.
The latest news has worried regular swimmers and has a huge potential impact on the tourist industry.
Jo-anne Meredith, who works at Sally's House after-school club, said: "I went in the other day and took the children down there. It seemed very clean but there was a lot of seaweed.
"I'm quite surprised to hear about the results. It has put me off."
Worthing lifeguard Ben Brocklehurst swims in the sea several times a week.
He said: "I've never become ill from swimming. I am always confident about going in."
A spokeswoman for the Environment Agency said: "There are two levels of water tests.
"Excellent water quality is to EC guideline standards and, if passed, results in a Blue Flag. There is also a mandatory standard which means it is of satisfactory quality.
"Tests this year already show Worthing is not going to meet the excellent water standards demanded of the EC guidelines.
"It also looks likely to have failed the second level as well, but that has not yet been confirmed."
Although storms can be responsible for such water contamination, it is not thought to be the cause in Worthing.
The spokeswoman said: "Wet weather can cause problems with drains overflowing and going into the sea.
"There can be a number of reasons why there are bacteria present. I don't think storms are responsible in Worthing.
"It is subject to an investigation which looks at ways of reducing these levels in the future. We will look at how the pollution gets into the sea."
The EC test also take into account daily cleaning of beaches and facilities available.
A spokeswoman for Southern Water said an investigation into the infrastructure at Worthing had been launched following the EA reports.
She said: "There are a number of factors which can affect bathing water quality, including surface water run-off, private drainage systems and animals on beaches which would be considered by the Environment Agency.
"Southern Water has carried out multi-million pound improvements to Worthing Wastewater Treatment Works since 1983 which has brought primary and secondary treatment to the works and includes a three-mile long outfall to sea.
"It is this investment which has ensured Worthing bathing water has passed European standards since 1994 and we are very disappointed to hear of the failure."
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