Arrowtown resident Mia Bennie is the spokeswoman of a group of 10 concerned residents, mainly from Isabel Court and Jopp St, who support plan change 29, which would solidify the existing town boundary.
Mrs Bennie was asked to comment on the invitation to the community to attend an open day to be held by the owners of the proposed Arrowtown South zone.
She said the town's infrastructure and school were at capacity and questioned who would pay for infrastructure upgrades or extensions if private plan change 39 was approved by the Queenstown Lakes District Council.
Mrs Bennie said families with young children might find Arrowtown South attractive because it promised an early child-care centre.
However, there was no guarantee the facility would be built.
"My concern with Arrowtown South is their current application provides no certainty about what development will occur on the site.
"All they've applied to do is develop residential housing. There'll be no certainty about their proposed village core, or landscaping, or facilities, which are indicated in their publications which have gone out to the community."
Arrowtown councillor John R. Wilson said he would not attend the open day, as he knew what the proposal involved.
He said he was keen on Arrowtown's boundary remaining as it was.
"I think Arrowtown South is possibly a good development, but in the wrong spot.
"We've got three plan changes which could affect Arrowtown. Plan change 29 concentrates on where the urban boundary is going, then plan change 30 sets out how settlements or urban areas can be expanded in the future, and then this [private plan change 39] comes along.
"The Resource Management Act is pretty complicated and the word `accepted' is confusing. The council accepting [Arrowtown South] doesn't mean it supports it and it could oppose the plan."
Private plan change 39 has been lodged with the council and is scheduled to be notified for submissions soon.
Up to 215 homes would be built on 17ha of the land, while 12ha would be publicly accessible open space.
A 1ha community hub would feature a village store, child-care centre and other facilities.
Arrowtown farmer Roger Monk is one of the landowners and will be at the open day.
He said in a statement Arrowtown South would be "a quality development that I, as a landowner, and the future residents can be proud of.
"We'll have narrow streets with grass verges and roadside trees, in the style of the older parts of Arrowtown, walking and biking tracks, a beautiful wetland area, and we're not planning any buildings along the steeper area of the escarpment, because that would be too intrusive."
The open day will be held from 10am to 2pm on the site bordered by Centennial Ave, McDonnell Rd and the Arrowtown Golf Course.
Access will be via the McDonnell Rd entrance.