The site, which lies between Tayport and Newport next to a lay-by which is a well-known local beauty spot, is likely to be visible from several directions.

During the planning process which ended in rejection of the application by Fife Council’s East Area Development Committee, objections were made by many local residents and the local community council.

In addition both Dundee City Council and Scottish Natural Heritage expressed concern about the open nature of the site, and the fact it lies firmly in an area of great landscape value.

The land lies in the upper part of a field beside the main road running between Newport and Tayport, and is also adjacent to the Kingdom Route of the Millennium Cycleway.

In his decision letter Mr Croft said Scottish Natural Heritage, while in favour of improving water quality and reducing the negative impacts of sewage discharges, was concerned about the adverse impact on the landscape.

Mr Croft said in his conclusion that the basic premise of not developing the area of great landscape value was sound in principle given the adverse visual impact. He went on to point out, however, that the circumstances of Scottish Water’s proposals were exceptional because of the statutory requirement and the public benefit.

Taking this into account together with information in an environmental assessment, he said, he felt that, exceptionally, he could grant planning permission.

Mr Croft has imposed a number of conditions on the development to cover issues such as work on the adjacent lay-by and parking areas, the specification and colour of buildings on the site and landscaping which will involve the creation of a “significant area” of new woodland.

Today local councillor Maggie Taylor said she was “extremely disappointed” by the outcome.

She said the development in an area of such landscape value was not in accordance with council policy, and that a beauty spot would be affected. The councillor added that she had strong concerns over infrastructure, noise and odour issues.