Thousands of homes which may be built in East Sussex face major water supply problems unless huge investment is made.

Officials at Tory-led East Sussex County Council believe there could be problems if the Government approves massive house-building plans.

Later this month the South East England Regional Assembly will decide where more than 500,000 homes will be built in the region in the next 20 years.

Council chiefs say unless money is invested in the county's water supply and sewage treatment, families risk severe water shortages and regular hosepipe bans.

Southern Water plans to increase the capacity at Bewl Water reservoir, the largest open water in the South-East.

However, the council does not think that is enough.

Environment councillor Matthew Lock said the Government had failed to think about the knock-on effect of its house-building proposals.

He said: "It is unacceptable that the Government wants all these extra homes when the background infrastructure is totally inadequate, particularly the supplies of water.

"Where is the extra money, essential to achieve this, going to come from? I hope the Government will think about this."

Water regulators last week rejected Southern Water's bid to increase bills by 45 per cent over the next five years, which would add £111 to the average bill.

Southern Water may now have to make cuts to its proposed £2 billion programme of service improvements, though Ofwat approved plans for a sewage treatment works at Peacehaven.