Controversial plans to build 860 homes and a primary school in Ashlawn Road have been met with anger from residents.
A campaign group has been launched to stop the development, which has now been submitted to Rugby Borough Council for approval.
David Wilson Homes is proposing to build homes, a primary school and associated infrastructure on land between Ashlawn Road and the Hillside estate – close to the landmark water tower.
Cllr Bill Lewis, chairman of Stop Ashlawn Road Development, believes the proposed development is in the wrong place.
He said: “Any development in this area will increase traffic on the estate roads, particularly on Norton Leys and Goldsmith Avenue and Charlesfield Road and Kingsway. Ashlawn Road too will be affected and it is already likely to suffer from extra traffic due to the new crematorium and by the enormous proposed development on the radio station site in Hillmorton.”
Cllr Lewis (Lib Dem) said there are insufficient child and youth facilities in the area already.
“Additional housing will make this worse,” he added.
The consultation period is four weeks - one week longer than the standard 21 days allowed for much smaller applications like house extensions.
Cllr Jerry Roodhouse, who is leader of the Lib Dems with Warwickshire County Council and serves the borough council’s Paddox Ward, is concerned about school places and said more work needs to be done on the plan.
He said: “How much more can the infrastructure take?
“Warwickshire County Council and the borough council are now failing to plan strategically for schools, health and highways.
“More joining up needs to be done.”
Carrick Casson-Crook, strategic land director for David Wilson Homes, said the homes will benefit the local economy through investment in jobs and by significantly increasing expenditure.