Both the state and the operators need to make further efforts in seeking the public's understanding on nuclear energy

Japanese Prime Minister Junichiro Koizumi

Critics have said the proposed use of the controversial fuel, known as MOX, is dangerous and more expensive than conventional nuclear fuel.

Correspondents have said the vote in Kariwamura - although not legally binding - has put the Japanese Government in a dilemma because it wants to make the use of MOX a cornerstone of its energy policy.

Mr Koizumi told the country's lower house of parliament: "Both the state and the operators need to make further efforts in seeking the public's understanding on nuclear energy."

Previous nuclear accidents are one reason the Japanese are sceptical about government nuclear power

Tepco's plan was to convert what is an existing nuclear reactor to a pluthermal (plutonium thermal) plant.

Pluthermal facilities are power plants that use plutonium-uranium mixed oxide (MOX) fuel in light-water reactors.

Of the 3,605 votes cast in Kariwamura, 1,925, or 53.6%, rejected the use of MOX fuel.

Japanese newspapers said the vote dealt a severe blow to the government's plan to promote the method of power generation as an answer to the needs of the resource-poor nation.

The decision (to accept such a plan) is up to the local community. But we will continue to seek understanding about the necessity of pluthermal facilities

Tepco spokesman Takashi Kurita

Japan relies on 51 nuclear reactors to provide about one-third of its electricity.

A spokesman for Tepco, Takashi Kurita, said the company would not continue with its plan to introduce MOX fuel against local residents' wishes.

But Tepco would keep trying to win them round he said.

Perhaps the government needed to explain more about the plan, although it had taken considerable pains to do so

Chief Cabinet Secretary Yasuo Fukuda

"The decision (to accept such a plan) is up to the local community. But we will continue to seek understanding about the necessity of pluthermal facilities," he said.

Chief Cabinet Secretary Yasuo Fukuda gave no hint that the government would be swayed from its nuclear power plans.

"Perhaps the government needed to explain more about the plan, although it had taken considerable pains to do so," he told a news conference.

"(Plans for new pluthermal plants) are a very important part of Japan's energy policy.

"Considering the future energy needs, I feel we must seek better understanding not just from the residents (in Kariwamura), but also the entire Japanese public."