The proposed site of a controversial £200 million sewage plant plan was rejected by its proponent, Southern Water, in 1997, on the grounds it would have an unacceptable impact on the countryside and on nearby homes.

John Hodgeson, of Peacehaven Residents Opposing Urban Development, told an inquiry into the plant that in October of that year, Southern Water rejected the idea of a treatment works at Lower Hodden Farm.

He said: "At that time they were actively seeking expansion at Portobello and said the alternative of building new works on greenfield sites such as at Lower Hodden Farm were rejected on the grounds that they would have an unacceptable impact on landscaping, countryside and adjoining properties."

Campaigner Stan Cannon of Bramber Close, Peacehaven, told the inquiry that Peacehaven should not become the dumping ground for Brighton and Hove's mess.

He said: "Peacehaven will be known throughout the south as the cesspit of Brighton. Peacehaven will be known as where Brighton puts its sewage, not that it has turned around over the last few years and is a lovely place to live."

A five-week inquiry is hearing an appeal by Southern Water after East Sussex County Council failed to decide on the application for the sewage plant.

Last night statements from protesters were heard at the Meridian Centre, where the inquiry is taking place. Residents have protested about the smell, noise, traffic and visual impact the plant would have.

Councillor Philip Howson, of Peacehaven Town Council, said 40-tonne lorries entering and leaving the site would put the A259 South Coast Road under serious strain.