DARRYL PEIRCE makes no attempt to hide his bitterness towards Contact Energy and ECNZ. "They came in, spent $22 million, gutted two communities and all we've got to show for it are empty houses and long grass".

As far as the second generation Millers Flat orchardist is concerned, Contact's plans for a hydro dam on the Lower Clutha River was a disaster for the area, him and his young family.

He has been against the dam since it was proposed but said the uncertainty now left hanging over the area was even worse.

Contact announced earlier this month it had ditched plans to build another giant hydro dam on the Clutha River. But it has no intention of selling the land it now owns and cannot rule out hydro development in the future by it or another power company.

Mr Peirce said that indecision and the land purchases preceding it had reduced the town to a shell.

The population had dwindled from about 250 to little more than 120. The electricity companies had bought a third of the town's 45 properties. Many of them are now empty, neglected and run-down, he said.

Long-term residents had sold up and moved on. In most cases, they have either not been replaced or their houses filled by seasonal workers or people taking advantage of cheap rents.

Continuing uncertainty about the area's future meant land values had plummeted. Mr Peirce reckons about 40% has been wiped from the value of his orchard.

"It's all very well for the company executives who make these decisions. They go home at the end of the day or the week to their families and their homes. But for us it is 365 days a year, it's always there in the back of your mind. I've had an absolute gut's full."

He believes the project embarked upon by ECNZ five years ago and inherited earlier this year by Contact was never viable but neither company would admit a huge and destructive mistake.

ECNZ spent $12 million on 3000ha of land and about $10 million on investigations.

But Mr Peirce's sentiments are not shared by everyone in the area. Miller's Flat Residents and Ratepayer's Association chairman, John Lunn said Contact had made a business decision and there was no point in feeling bitter.

"Obviously we are feeling disappointed about the uncertainty but people have to be positive and move forward."

He said the spirit of the community was still strong but agreed many of the new transient residents did not contribute as much to the community as people they replaced.

Contact Energy communications manager Bruce Thompson said the company was doing all it could to be a responsible land-owner. He said it had no intention of selling the land or even dripfeeding it back on to the market and rejected suggestions Contact was a company without conscience.

"We are a company but as individuals within the company we are very aware of what is happening to people in that community. Sometimes there is conflict between what people want us to do and what we have to do commercially."