Action is likely to tackle car pollution in Watlington after district councillors found levels exceeded Government targets.
South Oxfordshire District Council found higher than normal amounts of nitrogen dioxide from exhaust fumes in the Couching Street area.
The town is used by hundreds of commuters travelling to and from the M40 each day.
A council spokesman said: “The levels recorded are within the limits for short-term exposure and even the most vulnerable are not likely to notice any short term health effects. However, in some places it is currently exceeding the levels for long term protection of people living in the area.
“The main source of the nitrogen dioxide is road traffic and although traffic levels aren’t particularly high, the narrow, high-sided streets in Watlington mean that the pollution cannot disperse easily.”
David Dodds, cabinet member for environmental services, said: “Declaring an air quality management area is the first important step to improving the air quality in Watlington.
“Poor air quality affects us all and it is going to be important for us to work closely with the local community in drawing up and implementing an action plan to tackle this problem.”
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