The Castles, Woods and Water project near Morpeth, is developing renewable energy, restoring footpaths and boosting flood defences.

It is also using miniature CCTV cameras to tackle illegal fly tipping.

The project is shortlisted for the 2006 Sustainable Communities Awards, being held in London next month.

Hard work

The project has been praised for its efforts to make neighbourhoods in the area cleaner, safer and more environmentally conscious.

Glen Sanderson, of Castle Morpeth Council, which has supported the project, said: "Being shortlisted for such a prestigious award is a coup in itself.

"The judges were obviously impressed with our submission. I would like to pay tribute to all the hard work from staff and local people of all ages and walks of life who have helped get us to this tremendous stage."

The scheme was launched after Castle Morpeth Council won �2.6m in funding from the government, along with 27 other pilot schemes in the country.

The awards are backed by the Department for the Environment, Food and Rural Affairs (Defra).