The deadlock which has stopped thousands of new Norfolk homes from being built could be broken within months, it has been announced.
The first decisions on major Norfolk housing schemes in a year could be made from April, after months where no progress on housing has been allowed across vast areas of the county.
Leading council officer Phil Courtier said the delays in being allowed to give housing the go-ahead was having "the biggest impact of anything, ever, on the growth of Norfolk".
That stall on housing decisions within the catchment areas of the River Wensum and the Broads has been in place since March.
That was when government advisor Natural England told Norfolk councils they could not approve plans involving 'overnight accommodation' until it could be proven they would not lead to more phosphates flowing into waterways.
When nitrogen and phosphate nutrients enter water systems it can cause excessive growth of algae - known as eutrophication - which can harm habitats.
But Mr Courtier, who heads the planning department for Broadland and South Norfolk Councils, revealed a new joint venture between Anglian Water and five councils - Norwich, South Norfolk, Broadland, Breckland and North Norfolk - could be the solution.
Schemes such as the Long Stratton bypass, the Anglia Square revamp in Norwich, expansion plans for Rackheath and the redevelopment of the former Colman site in East Norwich have all stalled because of the issue.
Councils previously hired consultants, who helped created a calculator for developers to establish what the nutrient load of their schemes would be.
They could then understand what they would need to do to make their development nutrient neutral.
READ MORE: How two words left Norfolk's plans for thousands of homes in limbo
At a recent meeting of Norfolk County Council's scrutiny committee, where nutrient neutrality came under the spotlight, Mr Courtier said the joint venture could be the key to councils being able to grant permission once again.
It would, he said, enable measures such as reed beds and crop cover to be provided to trap nutrients and prevent phosphate run-off.
It would also pay for improvements to wastewater recycling and retrofitting of existing homes.
Mr Courtier told councillors: "This is having the biggest impact of anything, ever, on the growth of Norfolk.
"At this point, there are thousands of homes which are not being granted planning permission because of the issue around nutrient neutrality.
"The housing crisis is getting worse and nutrient neutrality is having a profound impact. There's an onus on all of us to seek to address this."
He said the joint venture would help unlock developments, with developers able to buy credits in return for mitigation.
He said: "We are anticipating that the venture will go live in April. I think that is the fastest that any area has responded across the country and is the most strategic and significant programme anywhere to date.
"That will address about 40pc of the overall growth of our area. We are looking at about 22 different projects with a wide geographical spread."
Once the joint venture is up and running it will be self-funding, with money from the credits which are bought used to provide more mitigation.
But to get it started, each council is likely to have to put in £30,000, potentially with initial seed funding of £150,000 put in by one of the councils, payable back once it begins.
Mr Courtier said bigger projects, such as the housing associated with the Long Stratton bypass, were likely to seek to provide their own schemes - such as new wetland areas.
But he said the joint venture would allow, potentially from April if Natural England is content with it, for decisions on a few hundred homes to be made, which would then increase in the following months.
However, he warned there could yet be further delays, because every application and the related mitigation would need to be assessed by Natural England.
But Brian Watkins, leader of the Liberal Democrat group at County Hall, questioned why it had not been clearer, sooner, that Norfolk would need to take action.
He said: "It seems incredible to me that it has taken so long."
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here