David Wilson Homes has put forward plans to Rugby Borough Council (RBC) to build the new development on land at Coton Park East, off Gentian Way, which would include 165 homes - 40 per cent of which would be affordable housing, open space and inf
rastructure.
But councillors objected to the plans at a planning meeting on Wednesday.
When the plans were announced around 100 residents from nearby Newton attended a public meeting to raise concerns about the village becoming a suburb of Rugby.
A petition with 81 signatures has also been put together and Newton and Biggin Parish Council has now formally objected to the plans because of its close proximity.
Judith Leggart, chairman of the parish council, said: "When all the new homes were built at Brownsover in the past the village accepted there was a need for housing and we could hardly step in the way of that. But to remain a village there really should be a field's depth between the old rail track and the town.
"We have no amenities - no shop, no school, limited bus service and that's fine as long as we're a village but it's not if we're part of the town.
"We would not have access to any of the facilities there.
"We had quite a response and people are very anxious.
"A fair few in the village are sympathetic if new homes are needed and there is nowhere else, but this does not feel like this at all."
