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More than 200 fish are believed to have been killed after raw sewage drained into a pond.
Water tankers were at Kingsborough Manor in Eastchurch while workers raced against the clock to save as much wildlife as possible.
But residents say fish perished and newts and endangered water voles may also have died.
Sheppey businessman David Green, who lives in one of the estate’s executive homes in Carey Close near the pond, said: “It’s a horrendous situation.
"Someone should be held responsible for this.
“The pond was being filled with waste from the estate’s toilets for a week and now all the fish, which had been there for years, are either dead or dying and no one did a thing. It’s disgraceful.
“More than 200 fish are dead and hundreds more are dying.
"There could have been up to 1,000 carp in that pond, with many up to two-feet long.
“Water voles, which are an endangered species, newts, ducks and moorhen have also been put at risk.”
Mr Green said he was told an underground sewage pipe on the Jones Homes estate had become blocked which allowed waste to backup through manholes.
He said one inspection cover on the bank of the pond was hidden by undergrowth so the sewage seepage went unnoticed.
Two water containers have been taking the contaminated water away and then replenishing it.
Mr Green added: “Workers have been oxygenating the water but I have seen dead fish floating on top and many gasping for air. It’s been diabolical.”
A spokesman for Southern Water said: “We have cleared a blockage on a sewer which was causing waste water to spill into the drainage pond from a manhole.
“Our pollution inspection team sadly found that some fish had died and we have undertaken measures to improve the water quality following the incident.
“We have kept the Environment Agency informed and our teams have been in touch with residents and the site housing managers.”
Many of the dead fish were mirror carp.
The spokesman warned: “Only the three ‘p’s – pee, poo and paper – should go down toilets.
"Items such as wet wipes and sanitary products in combination with fat, oil and grease can lead to sewer blockages.”
House-builder Jones Homes describes its "flagship" Kingsborough Manor development as "one of the most prestigious addresses on the Isle of Sheppey".
Last month, it had 18 four and five-bedroom detached houses left to sell on the 211-home estate at a cost of £520,000 and £600,000.