Organisers of Littlehampton Regatta are furious about the cancellation of the town's biggest annual event.

The regatta, which draws crowds of up to 40,000 to the riverside, was called off because of redevelopment work on the harbour.

One of the organisers, Mark Butler, fears the regatta is now unlikely to go ahead ever again.

The colourful event, which takes place every August, is a celebration of the town's waterside heritage.

But work on the Town Quay area of the harbour this year will put it out of bounds to the larger boats which normally moor there.

Chairman of the Regatta Group, Mike Northeast, said the cancellation was a devastating blow to the town.

He said last year's millennium event had been the most successful since the regatta was revived five years ago.

The decision came after crisis talks between Mr Northeast, the land events organiser Mark Butler and harbourmaster John Sharwood.

Mr Northeast said he was not against the redevelopment scheme but criticised the way it had been co-ordinated.

He said: "It could have been done in stages so the regatta could still have gone ahead.

"This is not something that is planned just months in advance. It is planned more than a year in advance.

"This is a dreadful disappointment. We have got ourselves established now, so having to turn people away could be devastating for us in the future."

Mr Northeast said money had already been spent on this year's event which would be difficult to recover.

However he said plans would still go ahead for a regatta in 2002, despite the possibility that similar problems could arise.

But Mr Butler predicts a bleaker future.

He said: "This is the end of the regatta. We have been saying the redevelopment would affect all aspects of the harbour, and it has already started to.

"What is the point of having a harbour development if there is no longer a working harbour? Take away the riverbank and you take away everything that makes this town what it is.

"This is a tragedy for the town and for the tourists we so desperately need - and it is a sign of things to come."

Littlehampton Town Councillor Malcolm Belchamber also criticised the development. He said: "The cancellation of the regatta is a devastating blow to the area.

"Originally the redevelopment was supposed to nurture riverside businesses like chandleries and boat repair shops. But instead it has become first and foremost a housing estate.

"The houses are so expensive very few people in Littlehampton can afford them. The penthouse flats are on sale for £400,000.

"People are already starting to complain about the smell of fish and the noise of the dredger. This is a working harbour - what do they expect?"

The regeneration scheme for Littlehampton harbour includes 83 homes, a youth hostel and a visitor heritage centre.