CIVIC chiefs in Hythe are worried that flood risk maps could sabotage new developments in the town centre.
Potential flashpoints include village businesses and homes in the main shopping area, near the promenade, and in Shore Road and Jones Lane.
Environment Agency bosses have designated the areas as high-risk with the potential to flood once every 200 years.
The village has several brownfield sites that would be ideal for new homes but the risk of flooding could threaten fresh developments.
The Environment Agency drew up the maps after the government announced plans to reduce flood risk to 80,000 homes across the country.
Vice-chairman of Hythe and Dibden Parish Council Mike Short said: "We are concerned that it might cause a blight on the centre of Hythe because it would restrict any development that might be needed and therefore the actual centre could eventually die if no change is allowed.
"The biggest problem that could occur in Hythe is if the American military base ever disappeared. That could potentially provide a large space for development."
Mr Short said that the maps do not even take current sea defences into account.
Hythe's county councillor Brian Dash said: "It's ludicrous because Hythe is tidal. If it floods it can only be flooded for a matter of hours."
Any structural changes or potential developments in the catchment zone will now be subject to a complex risk assessment before approval is given.
John Smith, team leader for development control for the Environment Agency in Hampshire and the Isle of Wight, said: "The maps themselves don't cause a planning blight but they do highlight the need for a full risk assessment to prove that development is appropriate for a particular place.
"The maps are our first real attempt to get to grips with this. They will be refined every three months as we learn more and more."
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