The EA put together the bid after an extensive study of the rivers Bain and Waring to try and better understand last summer's floods and the chances of it happening again.


If the bid is accepted, two reservoirs will be built upstream of Horncastle for storing flood water and a series of flood walls will be built in areas at risk in the town.


Ian Russell, EA area flood risk manager, said: "At the moment it runs off the land and hits Horncastle and the villages down stream. We want these reservoirs to control how much water goes through the town."


The plans are similar to a flood defence scheme first considered in the 1990s but never realised.


Mr Russell said he thinks the area stands a better chance this time. He said: "There has been a change in the rules for securing funding.
"Besides the economic factors they consider the number of properties affected and wildlife."


In addition to the bid, £300,000 is to be spent on dredging the Rivers Waring and Bain in October and the EA is reviewing the operation of the sluice by the swimming baths in Horncastle.


Flood victim Violet Clark, 66, of Prospect Street in Horncastle had seen her home flooded twice, in the 1980s and last June.

She said: "I hope they do get some money because we need it but I have heard it time and time again and in the end you just can't believe that anything will be done."

More than 90 homes were flooded in the Horncastle area last summer. Based on flows recorded, Mr Russell said there was a 1 in 15 annual probability of this event occurring again.

A decision on the bid will be made in Spring 2009.


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