The area is prone to flooding

The developers behind Merlin's Gate promised to transform 35 acres of land on the banks of the River Towyi into a first class shopping and leisure centre.

Top restaurants, new shops and even a hotel were promised along with a new bridge linking the developemt with the existing town centre.

But the plan to build on land so near to the river was always controversial with concers raised about the ecological impact.

This area of Carmarthen is no stranger to flooding, and there were grave concerns that building on a natural floodplain would put residents and their homes at greater risk every time these waters rise

The developers Liberty Properties had said that building on the land would actually make it less prone to flooding - as well as create 500 new jobs.

The council's decision to reject the planning application was unanimous.

Shoppers in Carmarthen were surprised that the scheme had been shelved.

"The area can do with more opportunities for employment," said one .