A village is celebrating a first Blue Flag for its beach after fears a bid for the award was under threat.
The beach is one of the most popular on the Cardigan Bay coast
Welsh Water has put off plans to connect several homes in Llangrannog and nearby Pontgarreg, near New Quay, to the public sewage system, saying the cost was not be justified.
People are concerned that the decision could lead to the beach being polluted.
Local councillor Ian ap Dewi welcomed the award, but will pressure Welsh Water to do the work.
Blue Flags in Wales are issued by the Keep Wales Tidy organisation.
Last week, Mr ap Dewi complained that Welsh Water's decision could have a negative impact on the beach and the community.
Some of the homes in the area have ageing private storage tanks and there are still concerns they could leak into a stream near the sea.
Welsh Water said last week that the cost of a public sewer system "could not be justified" and it was putting its plans on hold.
Mr ap Dewi said: "I thought we might not get a Blue Flag because of Welsh Water's decision, but the fact we have been awarded one is good news.
"But I will still pursue Welsh Water and push for them to carry out work on the public sewer system."
Llangrannog cafe owner Julia Palframan said it was important the quality of the beach was recognised.
But she said: "Welsh Water still needs to address the sewer problem - it's still an issue."
Last year, Llangrannog beach passed two water tests which put it in line for a Blue Flag.
In 2003, Llangrannog fell below European standards and after an investigation by the Environment Agency it was felt that faulty private sewage systems had contributed to the failure.