Cypermethrin sheep dip has been permanently withdrawn from sale in the UK, the Environment Agency has announced.
Concerns were raised in 2005 that the insecticide was damaging watercourses and affecting marine life after a number of serious incidents occurred.
In one case, more than 5,000 rare white-clawed crayfish were killed in the River Mint in Cumbria.
Sales of cypermethrin dip have been suspended since 2006.
Commenting on the decision to prohibit the purchase of the substance, Environment Agency chief executive Dr Paul Leinster said: "This is great news for the environment. It means greater protection for kilometres of high quality rivers in the sheep farming areas of Wales and England."
In related news, the organisation announced last month that it was investigating a serious outbreak of fungus in the River Crane.
The substance is generally associated with organic discharge and spreads across the river bed, affecting organisms living in the water.
Written by Joseph Hutton