Dozens of dead fish have been spotted in the canal and people are being urged to stay away from a 12-mile stretch of canal network in Walsall.
In a statement yesterday, the EA said it was investigating a local company, Anochrome Ltd, where it believes the spill of sodium cyanide originated, and that the spill had been stopped. Anochrome describes itself as "a quality conscious and environmentally aware organisation" on its website.
Walsall Council previously said a major incident was declared on Tuesday. The public have been asked to avoid an extended area of the canal and towpaths from the Walsall lock flight to the lock flights at Rushall, Ryders Green and Perry Barr.
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