FANCIFUL notions of regeneration have come and gone, but a spectacularly beautiful yet isolated dale is on the brink of one of the most exciting phases in its history.

The discovery of "hot rocks" deep below the valley floor in Weardale, County Durham, opens enticing opportunities for tourism and business development to help it recover from job losses and the 2001 foot-and-mouth crisis.

A task force set up before the closure of the Eastgate cement works by Lafarge in 2002 came up with the idea of replacing it with an eco-village combining five sources of renewable power and quickly creating 150 much-needed jobs.

Residents have remarked on the irony of an unspoilt dale remarkable for its spectacular natural beauty being swamped by visitors on a green tourist trail.

Tens of thousands have already arrived this year to visit the recently reopened Weardale Railway and the new Harperley Prisoner of War Camp attraction.

Stanhope Parish Council chairman Harry Irwin appealed to project leaders not to destroy the dale's character.

He said: "That is the last thing we want. This has to be properly thought through so that there is a balance between long-term employment and tourism.

"We are already finding in Stanhope that parking is a problem since the railway opened.

"People are attracted here by the lovely environment and we do not want it spoiling.

"We need permanent, well-paid jobs to keep people living here and sustain our schools, churches and other organisations.

"We have to think of the future and of future generations.

"I want this to happen, even though I was doubtful at first. I am very pleased it is going to work."

Task force members are confident the jobs produced by the project will more than replace the 147 lost at the cement works.

Durham County Council regeneration director Bob Ward said there had been huge interest from energy companies even before the drilling results were announced.

He said the scheme would bring much-needed jobs to Weardale. He said: "It is a very remote area and, despite our best efforts, it is clear there are still people unemployed after the closure of the cement works."

John Holmes, One NorthEast's director of regeneration and tourism, said: "This pioneering development has the potential to generate new jobs and prosperity for the dale and put the area at the forefront of renewable energy usage in the UK, which will play and increasingly important part in all our lives."

More details of the scheme will be announced in the new year. The water found in a 1,000-metre deep test borehole was 46C, but experts estimate that going another 700 metres down would produce temperatures of about 77C.