According to Bell's theorem, the degree of correlation between spatially separated measurements on a quantum system is limited by certain inequalities if one assumes the condition of locality. Quantum mechanics predicts that this limit can be exceeded, making it nonlocal. We analyse the effect of an environment modelled by a fluctuating magnetic field on the quantum correlations in an EPR singlet as seen in the Bell inequality. We show that in an EPR setup, the system goes from the usual 'violation' of Bell's inequality to a 'non-violation' for times larger than a characteristic time scale which is related to the parameters of the fluctuating field. We also look at these inequalities as a function of the spatial separation between the EPR pair. © 1995.