A water mill in rural France is given a Japanese makeover

The last thing one might expect to find on a drive through the heart of Limousin, between Brive, Limoges and Périgueux, is a corner of rural Japan. Indeed, when Ken and Sue Merren stumbled across this building, set in 37 acres of countryside, it was a derelict water mill - typical of this area of the South of France.

Having lived in Tokyo for 15 years, the Merrens are admirers of Japanese architecture. "We found the mill at the beginning of 1991. It was built on the site of a forge and had been used to make paper pulp up until 1969," says Ken.

"It suited us perfectly because we wanted to live by water, which would make a statement and also have some architectural merit." He found an English architect, David Martyn, based in Périgord. He understood what they wanted to achieve, and they set about designing a house that was both energy efficient and low maintenance.

"It took us about a year to decide what to do, six months to dismantle the building, clear it and consolidate the foundations and then another three years to build and complete it.

Built on the footprint of the old one, the building looks as if it is a substantial timber-framed house, but in fact it is built on a frame of reinforced concrete, which goes right down to rock. "The house is surrounded by water and at different times of the day, the light reflects off the water on to the roof, which looks wonderful. David's attention to how the light flows into the building is superb," says Ken. In the centre of the living area, which measures 50ft by 31ft, there is a gigantic circular granite fireplace. Over this is a black steel cone chimney which hangs from the rafters.

"Off one side of the living area is a little Japanese fireplace - a small sunken area with charcoal and a kettle hanging over it.

"We sit around the fireplace in the winter and make tea," he says. And in another corner, there is a sunken dining area, with large windows overlooking a water garden with willow, bamboo, a waterfall and a carp pond. The house has little furniture in it, like a traditional Japanese house. "When it was finished, we threw a party for the French artisans and I overheard one saying to another: 'It will be wonderful when the furniture is in,'" says Ken.

A gallery runs around three sides of the living area, where there are four bedrooms, and underneath is the hall, dining room and kitchen. Another Japanese touch is the big overflow bath attached to the main bedroom. "The water floods over the edge when you climb in," he says.

The windows all have paper screens and every door and window has foam-insulated roller shutters on the outside, which can be operated remotely. And being faced internally and externally in western red cedar, the house needs little upkeep. Neither does the garden, which has no lawn at all - just rock, water, maple and pine trees. The Merrens were able to salvage and restore one room, which pays homage to the building's former use, with the old wooden wheels still intact. "It helps to give the new part of the building an industrial connection" he says.

But now that Ken is a consultant to a boutique ice-cream company in Buckinghamshire and they have found another idyllic house in Cornwall, the couple are selling up. "Life goes on," he says. "I would like someone else to be able to enjoy the house, although it wouldn't suit anyone wanting a conventional home. It's basically just a big, big space."

Moulin de Malherbeaux, near Excideuil, Limousin, €980,000, including agency fees, Savills, 020-7016 3740.