had changed this and a new lining using butyl, concrete and gabions had to be created during 1994. Shrinkage of the peat had also caused subsidence of the canal and a new lock was built with a drop of . On 3 June 1995, the restored section between Frankton Locks and the aqueduct over the River Perry was opened and the new lock was named the Graham Palmer lock, after the man who had been instrumental in so much canal restoration through the creation of the Waterway Recovery Group. The section onwards to Queen's Head, a hamlet on the A5 trunk road, followed on 21 September 1996 extending the length of navigable canal connected to the national network to . The section from Maesbury to Redwith benefitted from European Regional Development funding awarded in 2000 but there were fears that restoration might be hampered by the designation of large lengths of the canal in Powys as a Site of Special Scientific Interest (SSSI) by the Countryside Council for Wales. Negotiations took place between the Trust, the Council and English Nature to ensure that this did not happen and an agreement was eventually worked out in 2005 which would ensure that the flora and fauna would be protected by off-line nature reserves, to allow full navigation on the main line of the canal. In the autumn of 2002 work was started on the restoration of Newhouse Lock, the penultimate lock on the southern section still owned by British Waterways. Soon after work started, it became evident that there were structural problems which had not been apparent when the first engineering inspection had been carried out. Further funding was obtained and the quality of the work done by volunteers resulted in them completing some of the tasks originally assigned to professionals. £250,000 was spent on the project, significantly less than the revised budget, and the contribution of volunteer labour was valued at £45,000. The restoration was completed six months ahead of schedule in 2006 and the lock was opened officially on 25 June 2006 by Lembit Opik MP in conjunction with the Annual Montgomery Dinghy Dawdle. The restoration of the lock was named Welsh Project of the Year by the Royal Institution of Chartered Surveyors in May 2007. This completed the restoration of all of the locks on the section of the canal owned by British Waterways and was the eleventh lock