Plans by the Sydney Catchment Authority to raise the height of the Tallowa dam in New South Wales (NSW), Australia, will not go ahead, said NSW Minister Carl Scully.

The government had been considering raising the wall by up to 7m to help supplement Sydney’s water supply. However, according to local media reports, two large underground water sources at Kangaloon in the Southern Highlands and another near Penrith have been discovered. Scully is reported as saying that there is now no need to raise the dam walls, although they may pump more water from the Shoalhaven river.

The government’s decision has been welcomed by a local residents group, who had claimed that a higher reservoir would threaten fishing and tourism interests. The Kangaroo Valley residents group however were still concerned about the amount of water that would be pumped out of the river.