WEST PALM BEACH, Fla. - Everglades restoration is on the right track but must continue expeditiously if the vast wetlands system is to regain its health and thrive in one of the most ecologically sensitive regions of the world, according to a federal report released Wednesday.

The state reached a settlement in 1992 after the federal government sued Florida for not abiding by its own clean water standards. The deal produced a consent decree under which a federal judge in Miami oversees Everglades cleanup.

U.S. District Judge Federico Moreno appointed a special master to oversee restoration efforts and to report to the court on its progress.

The topic has stirred emotion and heated debate as environmental groups and the Miccosukee Indians who live in the Everglades press for quicker progress while state water managers balance the needs of a thirsty and growing South Florida population with agriculture and ecosystem woes.

"The parties need to take some teenage advice and 'chill out' a bit," Special Master John Barkett wrote in a status report released Wednesday. "It is unrealistic to believe that there will not be missteps from time to time in Everglades restoration."

The report comes about year after the special master held a series of hearings on the pace of the 30-year, $10.5 billion project, the largest wetland restoration effort in the world.

Key to the plan's success is the reduction of the nutrient phosphorus from sugar farms, suburban developments and other sources into the Everglades, where it upsets the environmental balance.

Moreno ruled last year that the state and federal governments had violated the 1992 settlement by allowing excessive phosphorus discharges and failing to meet construction deadlines.

While the special master recommended to the court that it sustain its previous ruling of violations by the state, he also noted that Florida "has made considerable progress in remaining in compliance."

"If flora and fauna could speak, they would be grateful for the efforts to date to reduce phosphorous inflows but would still be making this plea, 'We have received too much phosphorous for too long. Please don't allow any more in,'" Barkett wrote, acknowledging that "this is not an easy task."

Ernie Barnett of the South Florida Water Management District, the agency charged with managing Everglades water, saw the report as a validation of the state's efforts and commitment to cleaning up the wetlands.

"I feel somewhat comfortable in seeing that the special master is sort embracing and validating the efforts in moving forward to get this done," Barnett said. "To us, it's a good indication that the court is appreciative ... and we're going to continue to implement the remedies that we've agreed upon."

The special master recommended continued restoration efforts and more frequent progress reports to the court.

Environmentalists seized on the affirmation that the state remains in violation of the settlement.

"This is a victory for the Everglades," said David Guest, an attorney for Earthjustice which represents a coalition of conservation groups, including National Wildlife Federation, Sierra Club and Audubon Society of the Everglades. "The district is going to have to comply with the law from here on forward under close federal scrutiny."