Jane O'Brien reports on the initiative to boost otter numbers

Environment Minister Michael Meacher, announcing the funding at the Camley Street Nature Reserve in King's Cross, London, said: "The corporate championing of the otter is a milestone in the work of business in preserving biodiversity."

The deal has been financed by a three-year £1m grant by Water UK - formed to promote the water industry - and 10 regional water companies.

It is the biggest corporate sponsorship of an endangered species to date.

The money will establish task forces of volunteers to help with survey work and oversee programmes to build artificial holts to encourage breeding.

The money will also fund wetland habitat restoration.

New threat from sheep dips

Brian Duckworth, Chairman of Water UK, said: "Today, most people's experience of otters comes from books and films such as Tarka and Right of Bright Water.

"Unfortunately, both these stories have unhappy endings. By working with organisation likes the Wildlife Trusts, the Environment Agency and with the government, we can make sure this otter tale has a happy ending."

Otters came close to extinction in the 1960s, but have returned in larger numbers in recent years. Their decline was linked to pesticides, and the Wildlife Trusts warned that otters now face a new threat from sheep dips known as synthetic pyrethroids.