KITO, Tokushima Pref. -- This remote village lies along the upper stream of the 125-km Naka River.

What might normally be an inconspicuous collection of 2,000 residents surrounded by mountains and forests, Kito has drawn nationwide attention to a 30-year battle it waged and won against the central government over a plan to build a dam.

Last month, the Construction Ministry officially announced the cancellation of the 11 million yen Hosogochi Dam project, a decision that came in response to recommendations by the ruling coalition to review unnecessary public works projects.