The landowners are taking their battle to the Environment Court, and said it was a severe miscarriage of justice that it is being forced to go to court this month.
But the Queenstown Lakes District Council denies trying to "bulldoze" through the change and the timetable was set by the court, it said in a statement.
Three proposals will soon be heard by the Environment Court.
Appellant Dave Hanan said these would change the land zoning under the proposed district plan, allowing land on the west side of McDonnell Rd to be subdivided for more intensive development.
"If not opposed, [this] will create spotting of the landscape with massive homes, like measles across the countryside."
The rural land around Arrowtown was a defining feature, and "urban bleed" would kill the golden goose of tourism, he said.
"The Arrowtown community is now fighting the [council] in the Environment Court over their decision to support various developers in seeking a land designation change that will, by default, allow some quite intensive developments to occur on what is now rural farm land."
If approved, the proposed Feeley block, Boxer Hill Trust block and Newman Guthrie block would each span 6ha.
Despite trying to "kick-start the mediation process", Mr Hanan was advised the issue would go straight to a hearing.
Landscape experts for the appeal were hard to find and were only available for a court hearing from late October.
"We submitted these dates to the court and the other parties, who rejected them and have insisted that we appear in court ... on September 26."
Evidence-in-chief needed to be submitted by September 9, he said.
"[This] is totally unfair on the people of Arrowtown and a blatant attempt to bulldoze through this awful change."
The council had previously taken a different stance, rejecting "a swath of consent applications" regarding the west side of McDonnell Rd.
The Newman Guthrie block application had been declined by the Environment Court and the refusal had been upheld in the High Court earlier this year, Mr Hanan said.
He believed the community had been effectively shut out of the process.
When the council advertised the proposed district plan, all the land on the western side of McDonnell Rd was zoned as "rural amenity", he said.
"Many people thought, ‘yes, at last council has listened’ and didn’t get involved or understand the planning process," Mr Hanan said.
However, in the decisions version of the plan, some land was rezoned "rural lifestyle".
Council planning and development general manager Tony Avery said the appeals represented the latest stage of a process that began in 2017, when Stage 2 of the proposed district plan was first publicly notified.
"This notification included the land in question and allowed anyone from the community to make a submission," he said.
Four Arrowtown appeals were lodged in May 2019 and mediated in February 2021, he said.
"Mediation has to date been unsuccessful since different parties have different aspirations for developing or not developing this area of Arrowtown.
"The Environment Court has now set a timetable for the appeals to be heard and council will participate fully in this process, noting that our position is to support limited development in some areas only and not to a scale sought by the appellants."
The current appeals related to different proposals than the previous resource consent applications that were ultimately refused, he said.
