The Department of Infrastructure has withdrawn its planning application for Ramsey's flood defences.
Just 12 days after his department applied for a four-foot high wall along the harbour, Infrastructure Minister Tim Crookall said the design had caused serious concerns.
The plans would have covered West Quay, East Quay and Derby Road with walls and floodgates as well as new paving and surfaces.
Mr Crookall says his department will now start consulting again to find a solution after worries were raised about parking and visual intrusiveness.
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