Birmingham City Council has refused to fund a museum remembering the flooding of a Welsh valley to supply city water.
Every day, tens of thousands of gallons are transported to Birmingham from the Elan Valley reservoir near Rhayader, Powys.
The valley was flooded 101 years ago when the government of the day used a compulsory purchase order to buy it and evict more than 100 residents.
Those whose homes disappeared under the water were not rehomed and received no compensation.
But Birmingham City Council has said that a community museum in Rhayader to preserve artefacts dating back to the valley's flooding would be "of limited direct benefit" to the city's residents.
And the leader of the council turned down an invitation from Community Arts Rhayader and District (Carad), which is setting up the museum, to make a donation towards its funding.
Peter Cox, Carad's chair, said that the people of the town were "very disappointed and angry".
He said: "When I had to announce that we would not be getting any funding from Birmingham we were in a hotel in the Elan Valley with the water passing on its way to Birmingham just 200 metres away.
"People there were the grandchildren of farmers who were turned out on the road with nothing.
"We do kind of think that Birmingham might have forgotten their back door."
In a statement, Birmingham City Council said that the council's legal power to fund the project was restricted because of the limited benefit to the city.
It added that in the council's reply to Carad, useful information about other funding sources was offered.
Last year, Liverpool civic leaders issued an apology for the 1965 flooding of Tryweryn near Bala, in Gwynedd, north Wales, to create a reservoir to provide water for the city.