An application to build a hydro station on the Mokau river in the King Country, New Zealand, has been declined.

King Country Energy wanted to construct an earth dam to generate 9.6MW of electricity, enough to power 5500 homes. But a joint district and regional council hearing committee refused resource consent on the grounds that adverse environmental effects outweighed the benefits of the hydro proposal.

The committee said that damming the river would replace 6.2km of flowing water with still water, which would affect the environment and recreational use of the river.