Villagers fighting plans to open Europe's biggest landfill site on their doorsteps were today celebrating victory after learning that the application had been withdrawn.

Premier Waste Management, which had been planning the 61-hectare site on farmland between the County Durham villages of Wingate and Wheatley Hill, yesterday confirmed it was withdrawing the controversial application following an objection from the Environment Agency.

The Wingate Grange Farm site - the size of 100 football pitches - stands on an aquifer which supplies drinking water to half a million people from Sunderland to Hartlepool and countless towns and villages in between.

The Agency said that they had not received any guarantees that the company could protect the water table from the threat of contamination and, therefore objected to the proposal.

Agency spokesperson Julie Teall said yesterday: "We objected to the planning application because the proposed Wingate Grange landfill site is on a major aquifer that is used to supply drinking water.

"Premier Waste Management had not shown in their application that they could fully protect this precious source of water from pollution in the long term.

"We have not had any information from Premier Waste Management since that could make us change our mind, so we stand by our position." Yesterday, a spokesman for Premier Waste Management said: "In light of the Environment Agency's recent comments about the Wingate Grange Farm site, the company has decided to withdraw its planning application."

The news was greeted with delight in the County Durham villages which would have been most directly affected had the site been given the go-ahead at June's meeting of Durham County Council's planning committee.

Residents had formed the pressure group Wingate Against Refuse, (War) to fight the proposal which would have seen almost 200 vehicle movements a day in and out of the site.

Campaign group chairman Cliff Walker said: "It very much appears that we have won and it is fabulous news.

"We are delighted that the Environment Agency saw sense and conceded that this application couldn't go forward. "This has brought the village together to fight against the proposal and we would like to thank every one who has helped."

Dorothy Peacock, of Wheatley Hill Mothers' Club, which joined the fight, added: "We are delighted - it is people power which has done this".