The Undertones star, 65, and locals rallied outside United Utilities' hub in Windermere yesterday after the firm dumped 8,700 hours of sewage into the Lake District spot last year.
Mr Sharkey claimed: "I'm here outside the epicentre of the largest sewage dumper in the country, United Utilities. The people of Windermere are none too happy their lake has become an open cesspit driven by nothing more than corporate greed."
He said United Utilities paid their shareholders £400million over 18 months and £30million to their former chief executive Steve Mogford in his 12 years as boss of the firm. Feargal also blasted regulators' "complete incompetence".
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