British Army bomb disposal experts made safe a large explosive device in County Armagh last night.
The fire bomb, believed to have been placed by dissident Republicans, was found at a waterworks on the Castleblaney Road in Keady.
Police said the device, containing petrol, had the potential to risk the lives of anyone in the vicinity and disrupt the water supply to about 10,000 homes in south Armagh.
The security forces were called to the scene following a number of claims purporting to be from the Continuity IRA, that a device had been left at Clay Lake waterworks.
An Ulster Unionist Party member of the suspended Stormont Assembly, Danny Kennedy, said the incident showed the threat still posed by paramilitaries.
Methodist church fire damaged
In a separate development, a Methodist church in North Belfast was severely damaged in an overnight fire.
Police and military personnel helped move local residents away from the area early today, after fire broke out at Jennymount Church off North Queen's Street.
Most were able to return by around 2am. No one was injured and the cause of the fire is not known.
