SES Water, the company which owns the land at Fetcham Springs, says it is "no longer looking to move forward with a change of land allocation" at the site.
The water company's intervention came on Tuesday, two days after Fetcham residents voiced overwhelming opposition to Mole Valley Council's plans to earmark the land for playing pitches.
James Ratcliffe of SES Water wrote to FRA Chairman Tim Waller setting out the company's position. He said this was something that was considered a number of years ago, and it had been left with a local rugby club to apply for a change of use of the land.
"My understanding is that this didn't happen, and SES appetite for the plan died a death. This is something that SES are no longer considering."
And he concluded: "To reassure you, and to reiterate, we are no longer looking to move forward with change of land allocation."
According to the Mole Valley Draft Local Plan the site should be allocated for playing pitches, with facilities such as a clubhouse and parking. But at the Village Hall meeting on March 1st residents made it clear they wanted the site retained for natural drainage and wildlife.
Despite the SES reassurances about the site, the FRA is urging residents to continue to register their opposition to the Council's proposal by completing the Draft Local Plan response form, or writing to the Council.
SES Water has also indicated that it is willing to discuss the future of the site with the FRA.
The FRA has contacted Effingham and Leatherhead Rugby Club for comment, but has so far received no response.