A venture to construct a wastewater pipeline in the city of Qidong has been dropped following protests over pollution concerns said Chinese authorities.
According to The BBC, demonstrators said that the pipeline, proposed as part of a paper making company, would pollute their coastal waters.
Demonstrators took to the streets and ransacked local government offices.
China has seen rising anger over environmental damage after three decades of rapid economic growth.
Earlier this month, plans for a copper plant in Sichuan province was halted after thousands of protestors clashed with police.
Analysts said that this is a measure of social tensions in China as the Communist Party prepares for a leadership transition later this year.