The development of small boatyards and workshops at Steamer Quay, Totnes, could create 200 jobs, the council says. But it is being delayed pending a high court hearing in April, when the travellers will challenge an eviction order ordering them to leave the council owned land.
The high court will be asked to rule whether the 1968 Caravan Sites Act applies to new age travellers.
South Hams district secretary David Incoll says the outcome of the case will affect all local authorities. 'If they win it will have drastic implications for every local authority in Britain because any vacant land will be at risk', he said.
Cornwall CC has come in for criticism from local residents after setting up a transit camp for travellers, the paper reports.