RIVAL developers who are designing homes and business schemes which would transform a dales village have been told to work together.

Banks Developments, in Tow Law, and Yuill Homes, from Hartlepool, have both submitted planning applications for separate sites on the eastern edge of Wolsingham.

Now planning officers have told them to co-operate with each other and Wear Valley District Council to come up with a fresh scheme, which will then go out to residents for consultation.

The authority's regeneration director, Bob Hope, said: "I have asked for a new master plan for the area in order to achieve the objectives of the local plan.

"We need to agree to one overall plan which will be acceptable to residents.

"There is pressure to create new industrial units for existing businesses to expand and new companies to come in. We need to move forward as soon as possible."

Banks Developments hopes to finalise its proposals over the next month for land it is developing at the Weardale Steel site, which is due to close.

Their original proposal for 150 homes and businesses was broadly welcomed at a public exhibition in March, but the company says it is now making changes based on comments received.

Homes could be moved away from the road and arranged in two or three small pockets instead of one big estate, and the whole area could be served by one access road, which would also link with the Weardale Railway depot.

Mark Dowdall, the company's environment and community liaison manager, said: "We understand that the council's view is that both applications should be considered together. It is a very complex issue."

Nigel Bell, land and development director at Yuill Homes, said: "We understand the planning authority request the two applicants to explore the possibility of a revised proposal which embraces the best of both original plans.

"We would welcome this approach as it will ensure the village and its community benefits from a development that is appropriate to its needs."