The Memphis, Tenn., office of the U.S. Army Corps of Engineers announced the decision Wednesday. A federal ruling in September 2007 stopped work on the St. John's Bayou-New Madrid Floodway Project.
The corps says it will comply with the court order and work with officials to plan the way ahead.
The floodway project would have closed a 1,500-foot gap in a Mississippi River levee, and, supporters say, benefited flood-prone communities in the Bootheel.
Two environmental groups, Environmental Defense and the National Wildlife Federation, brought a case in 2004 opposing the project.
Phone calls to those organizations were not immediately returned.
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