A $1 million sewer and water system built for the Louisbourg Resort and paid for by the Enterprise Cape Breton Corporation over six years ago has never been connected, CBC News has learned.

Back in 2006, the developers of a proposed resort outside Louisbourg promised 400 homes, a spa and a golf course. They did preliminary work on the site and ECBC agreed to pay for a water and sewer system for 125 homes.

To date, eight homes have been built and ECBC has spent $1.35 million on the promised water and sewer systems.

But the homes have never been connected to them.

The CBRM was expected to take over the systems, but administration manager Mike MacKeigan said that hasn't happened because there aren't enough homes to make the systems function properly.

"We wouldn't be prepared to accept ownership or responsibility of it until such time as there was another 20 or 30 homes out there. The water system is completed and the waste water treatment facility has been completed as well. So it looks like this is a pretty long way off," he said.

The resorts proponents blame the 2008 recession for stalling the development.

One of the owners, Heinrich Baurmeister, said construction will begin again this spring.

The Louisbourg Resort was announced in 2006 as one of the biggest private tourism investments in Cape Breton. It was to include a world-class golf course, spa and more than 400 luxury homes.

The ECBC is also under scrutiny for its plans to demolish the Royal Cape Breton Yacht Club on the Esplanade in Sydney.

ECBC said tearing the club down will help support harbourfront development.