The proposals would see farmland turned into additional wetlands
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One of Europe's largest man-made reservoirs could be enlarged under plans to extract more water from it.
Rutland Water was created in the 1970s to serve about 500,000 people across the region.
Anglian Water wants to extend the size of the lake as part of £65m proposals to ensure water demand can be met.
Wildlife groups praised proposals to protect birds' habitats, but some local residents said they wished the plans were more "sympathetic" to the area.
The site has become a magnet for water sport enthusiasts and wildlife lovers.
'Protect wildlife'
Anglian Water now wants to take out 50 million litres (about 11 million gallons) more water out every year.
Company spokesman Dan Baker said: "In terms of the wildlife we are obliged to look after that wildlife by European laws.
"That is why we are trying to create these lagoons in this part of the county to protect the wildlife when the water level does drop."
The proposals would see 50 acres (20.2 hectares) of farmland turned into additional wetlands to limit the impact on the birds living lakeside.
'Understand reasons'
English Nature conservation officer Neil Pike said: "This site is internationally important for its dabbling ducks species.
"We wanted to make sure that whatever project took place here there was adequate recompense for that bird interest and that that there was enough habitats set aside to make good any loss as a result of the project."
But Brian Grady, local parish council clerk, said: "We understand the reasons for it and we understand the need for more water and the need to take more water out of the reservoir.
"But what we don't understand is why that this cannot be achieved in a more sensitive, sympathetic way to what is a very nice, old English village."
The plans have been put forward to Rutland County Council.