PLANS to include a new cemetery alongside housing on the edge of Prestonpans are still being considered, despite concerns from environmental agency SEPA.

Planning officials at East Lothian Council have approved an application to build 165 homes at Dolphingstone Farm site – near Royal Musselburgh Golf Club – along with a playpark and restaurant, retail units and a new graveyard.

The plans, by Hallam Land Management, were approved in principle last November, on the understanding legal agreements were in place before it was formally granted.

SEPA told the council’s planning committee it had serious concerns about the effect of the burial site on groundwater on the surrounding land.

The council’s planning committee insisted further investigations into the environment agency’s concerns would have to be carried out before any final approval could be granted.

Last week, the plans were given official approval in principle following legal arrangements being put in place, but the council said it would still need a resolution between developers and SEPA before building on the land could be approved.

During November’s discussions of the plans, anger was expressed by ward councillor Willie Innes at the last-minute objection from SEPA, which was received on the day of the meeting.

He described the late representation as “appalling”.

And he defended the proposals to build on the land.

He said: “What Prestonpans needs is affordable housing and 40 houses here is a significant amount.

“The cemetery is a benefit that is needed; within a short space of time there will be no space to bury our dead.”

Prestonpans Cemetery is at crisis point, with planners warning it will be completely full within a year.

The graveyard, which lies off Nethershot Road, covers both the town and Cockenzie and Port Seton.

The new cemetery has been allocated 1.4 hectares of land at Dolphingstone. Hallam Land Management said there was no date for the start of work at the site at this stage.

SEPA insisted its objection to the cemetery still stands.

A spokesman for the agency said: “SEPA maintained its objection to the planning application for a mixed use development, including a cemetery, at Dolphingstone Farm in a letter dated October 30, 2015, and this remains our current position.

“Our objection is based on the potential for the proposed cemetery to impact adversely on groundwater. Whilst there were further discussions after our last formal response, at no point did we remove our objection to the planning application. SEPA considers possible impacts on groundwater from cemetery development to be a principal issue that should be addressed.”