SYDNEY, 31 July 2006 - Residents of a drought-stricken Australian town have rejected a plan to drink water recycled from sewage, striking a blow to conservationists who want the scheme to be rolled out across the country.

Toowoomba in the state of Queensland has faced water restrictions for a decade and is one of hundreds of small towns suffering from a shortage of rainfall.

Local Mayor Dianne Thorley had urged the 100,000 strong community to back a plan to pump purified effluent back into dams for drinking, and warned the town's water supply could dry up within two years without drought-breaking rains.

But in a referendum on Saturday, Toowoomba convincingly rejected the proposal, by approximately 62 per cent to 38.

"Commonsense has prevailed," local councillor Keith Beer said on Sunday. "This is a victory for the community."

The A$73 million scheme would have been the first deliberate reuse of sewage for drinking in the country, joining a growing number of similar schemes worldwide.

Toowoomba City Council had proposed treating wastewater before pumping it into the town's main resevoir and said the process would remove viruses, bacteria and hormones from the water.

But Beer said townsfolk were concerned about health risks and that the project could damage tourism and affect house prices.

Kevin Flanagan, director of Engineering Services in Toowoomba City Council has been responsible for supplying water to Toowoomba residents for over 17 years and slammed the referendum result as bowing to fearmongering.

"I am frustrated, angry and disappointed," he said.

"I'm especially frustrated that the debate was not based on sound science. It was not a debate about water but about politics and vested interests. The community of Toowoomba has been subjected to a nasty and extensive scare campaign. Recycled water remains a very worthwhile and safe option for communities to consider."

Karen Hussey, chair of Australian National University's Water Initiative, blamed the 'yuck factor' for the community's rejection of the plan.

"The 'no' in Toowoomba is, ultimately, a failure in communication: first on the safety and reliability of water recycling as a policy option, and second on the urgency of Australia's water crisis - future generations will want more of an explanation than simply 'the yuck factor'."

However in issue 9 of Cosmos, which featured an extensive discussion of the possibility of drinking recycled water, Blair Nancarrow, director of the Australian Research Centre for Water in Society, explained that 'the yuck factor' was unmoved by communication and better education. "It hangs so much on irrational and emotive feelings," she said. "Information and knowledge doesn't seem to affect behaviour."

Queensland Premier Peter Beattie, who backed the proposal, called for a wider debate on water recycling to address the state's dire water shortage.

He said a similar referendum would he held in southeast Queensland in 2008.