Film-makers Pete Bryden and Ed Cookson have revived the techniques and approach to children's TV that made Bagpuss, The Magic Roundabout and Camberwick Green such enduring favourites.

Summerton Mill features the adventures of Dan and his animal friends who live in a tumbledown watermill which has strange magical properties.

Ed, who lives in Bloxham, said: "It's not a reaction against the kind of stuff being produced today, it's just based on what we found inspiring to us as young children."

Summerton Mill is filmed using stop-frame animation techniques to bring to life seven inch-high models on a set based on an idealised version of a valley near the real-life village of Somerton – where Pete used to own a cottage.

Former Satori rock guitarist and Banbury businessman Pete, 36, is the director of Summerton Mill Ltd, the company set up to produce the programme at the Colin Sanders Innovation Centre in Banbury.

He said he hoped it would become an enduring 21st century animation classic for today's generation of young children.

"The story takes place in the beautiful Summerton Valley and hinges on Dan's adventures with his loyal companion, Fluffer, and friends, Dr and Mrs Naybhur, who live in a cottage on the hill," he said.

"It also features loveable animal characters, including Francoise the cow, and Mousey-Tongue, the laziest cat in the world.

"When it rains up on the hills, the old waterwheel on the tumbledown Summerton Mill starts to turn, a little bit of magic takes place, and Summerton Mill comes to life."

A day's filming results in just 20 seconds of animation, with characters moved just a couple of millimetres between each scene.

Thirteen four-minute episodes of Summerton Mill have been commissioned to be included in a new flagship BBC pre-school series called Tikkabilla, to be screened next year.

The characters' voices will be provided by Silas Hawkins, whose father, Peter Hawkins, provided the voices for children's series including Captain Pugwash, Bill and Ben – the Flowerpot Men, The Woodentops and the Daleks in Doctor Who.

Production manager Judy Owen completes the team.