The Advocate General of the European Court has rejected Ireland's defence in a case against the State for breaches of the EU Water Directive.
A number of environmentally- based bodies, including Friends of the Irish Environment (FIE), had complained to the European Commission in 1998.
They claimed that more than 40 per cent of the group water schemes, and a significant number of public supplies, failed to meet EU standards.
In response, the State claimed that the directive does not make it culpable for all inferior testing results, but represented "merely an obligation of diligence, to be assessed in the light of the principle of reasonableness and proportionality".
However, in an opinion announced early yesterday, the Advocate General said he did not accept this line of defence.
It is usual for the European Court to make findings in line with its advocate's opinions.
Yesterday's announcement is being taken as a sign that Ireland will lose the case taken against it for infringement of the directive.
In his opinion, the Advocate General, Mr M.A. Tizzano, recognised that Ireland had taken initiatives to improve the overall quality of drinking water.
However, "although appreciable, these initiatives are not capable of satisfying the obligation as to results, and nor can they be used in justification for its infringement".
He sustained three complaints. These were that:
Ireland had not ensured compliance with the directive in relation to the public water mains network and certain parts of that network in particular;
Ireland had not ensured compliance concerning total and faecal coliforms in relation to certain group water schemes;
Ireland had no binding national legislation which it could apply to group water schemes.
Of particular concern to the Irish authorities is the advocate's rejection of the Irish defence that group water schemes do not come under the scope of the directive as they are "private" rather than "public".
The "opinions" of the Advocate General are the final step before the court judgment, which is expected later this year.
At that point, Ireland will face the possibility of daily fines for continuing non-compliance with the directive.