Plans by cross-Border body Waterways Ireland to build a regional office in Carrick-on-Shannon are under review following a storm of protest from residents.
More than 2,000 local people have signed a petition opposing the siting of the building on the banks of the river, saying it would obscure the view of the river.
They claim it would remove the last remaining riverside green space on the Roscommon side of the town.
The objectors say the town is in danger of becoming known as "Carrick-No-Shannon".
Waterways Ireland, which is proposing to build "a quality landmark building" at the waterfront location, says it will now consider its options following a highly charged meeting attended by an estimated 300 people.
"The idea of this week's public consultation was to garner the views of the public," said Eanna Rowe, spokesman for the body which has responsibility for 1,000km of navigable waterways.
"There would be no point getting people's view and then ploughing ahead when 300 people at a meeting were dead set against the building."
Mr Rowe said Waterways Ireland would take on board the views which were expressed and would decide "sooner rather than later" on whether to proceed with the project and lodge a planning application with Roscommon County Council.
The proposed site is at Cortober, which is in Co Roscommon, just across the border from Leitrim.
The 1,000sq m building, which comprises two floors, a terraced roof and underground parking, would use only a quarter of the site, with the remainder to be developed as a "high-quality amenity area" which would include a riverside walk, said Mr Rowe.
Damien Duignan, a spokesman for the residents, said there had already been too much development along this stretch of the river.
"If they want to promote the Shannon, surely they should let the people see it. We don't want them to steal the river away from us."
He said generations of people from the town had learned to swim at this spot.
Despite the overwhelming opposition to the project, Mr Rowe said only 20 people had availed of the opportunity to inspect a model of the building which was on display for three weeks.
Chairman of Leitrim Tourism Joe Dolan, who is proprietor of the Bush Hotel in Carrick-on-Shannon, said people were opposed to the project "because we would like to see the river kept green".
While architecturally the proposed Waterways Ireland building was first class, it would remove a key amenity from the town, he added. "It is the right building in the wrong place."
Mr Rowe said the Office of Public Works had investigated seven sites and had deemed this one the most suitable for environmental, access and financial reasons.
"Waterways Ireland is very welcome to Carrick but there has been considerable residential development in this area. This is the last green gap and it would be shameful if it was lost. It is now the only point on that approach to the town where you can still glimpse the river and the boats," said Mr Dolan.
The project is also being opposed by Carrick-on-Shannon Chamber of Commerce and the Inland Waterways Association.
