The filmmaker, nicknamed the Pope of Trash, last year announced his plans to make a kids Christmas movie starring Johnny Knoxville.
He described the film, to be titled Fruitcake, as "Little Rascals on acid".
But the movie has been axed, and Waters is blaming the economy, and unpredictable studio executives.
He says, "I can't get it made.
"It's a children's movie. I thought it would do well, but it's not."
And he insists he is baffled by the decision: "I saw The Reader. Here's a movie that asked you to root for a paedophile Nazi guard. That got made."
Waters admits he is worried about where his next paycheque will come from - now his Broadway shows Hairspray and CryBaby have closed - adding, "In this economy, I'm going to have to do a puppet show."
Similar News ItemsJohnny Knoxville
- Questions and Answers With Luis Guzman (From NextMovie. 21 May 2013, 5:00 AM, PDT)
- New DVD Blu-Ray: 'Side Effects,' 'The Last Stand' (From Moviefone. 20 May 2013, 12:09 PM, PDT)
- New on DVD and Blu-ray: 'Side Effects' and More (From NextMovie. 20 May 2013, 12:00 PM, PDT)
- Hollywood Cinematographer, Polly Morgan, Shoots for Ghanchakkar (From Bollyspice. 19 May 2013, 5:40 AM, PDT)
- Jennifer Aniston Talks About Her ‘Frizzy’ Hair & The Rachel Cut (From HollywoodLife. 9 May 2013, 3:02 PM, PDT)
- 2013 Los Angeles Film Festival Lineup Includes The Way, Way Back, Only God Forgives, Fruitvale Station, and More (From Collider.com. 1 May 2013, 1:27 PM, PDT)
John Waters (I)
- Timeline: A Brief History of John Waters (From Huffington Post. 15 May 2013, 1:59 PM, PDT)
- 'Lovelace' and 'Emanuel and the Truth About Fishes' to Bookend Provincetown International Film Festival (From Indiewire. 15 May 2013, 8:53 AM, PDT)
- Seth MacFarlane Makes ‘Simpsons’ Debut On Season Finale (From Deadline TV. 8 May 2013, 10:13 AM, PDT)