Tasman District Council has backed out of plans to build the controversial Waimea Dam.
The $102 million project was debated at council today, with councillors voting six in favour and eight against.
Earlier this month it was revealed that estimates had increased by $26 million dollars, leaving Tasman District Council scrambling to find ways to make up the shortfall.
Final pleas were made to council this morning by members of the public from both sides.
Speaking on behalf of businesses, Nelson Pine Industries technical manager Phillip Wilson warned councillors choosing the 'No Dam' option would "cause regular and expensive disruption to industrial and commercial operations.
“The no dam decision will mean every man and woman for themselves".
Murray Dawson, from Tasman ratepayer group Waimea Information Network, called for an external review of the council's management of water resources.
"Modern techniques may well give a much more optimistic view of how much water is available for us. There is the potential for the water crisis to no longer exist," he said.