Residents who have lived on Newcastle's rural outskirts for decades are fleeing to avoid being swallowed by urban sprawl.
The Hunter and Central Coast Regional Planning Panel will consider next week the section of Winten Property Group's Minmi Estate project that falls within the Newcastle Local Government Area.
If approved, the the 858-lot residential subdivision will join the previously approved 1070-lot section that falls within the Lake Macquarie local government area.
City of Newcastle reluctantly gave its support for the project this week.
It acknowledged widespread community concern about the loss of biodiversity and amenity but ultimately said its hands were tied because the development was now considered to be consistent with the concept plan approved by the state government in 2013.
But Minmi resident Kathleen White said she had little sympathy for the council.
"I heard them say at a council meeting that this is not the plan they want for the area, but I don't feel they fought hard enough for it," she said.
"We are being asked to put up with 10 years worth of noise and vibrations in an area that is heavily undermined. People are already starting to move. In the past 12 months there has been a number of for sale signs go up."
Long term resident Christine Baker, who previously led a community campaign against the development has already moved.
"It was absolutely exhausting because you just have to keep fighting these developers," she said.
"I said in my submission (the Planning Panel) that I'm not against development because I know it's going to happen but it's got to be done right."
Another resident who did not wish to be named said Winten had treated the community with contempt.
"Their behaviour has been extremely poor," he said.
"The roads are full of holes and have messed up the water system, which has caused leakages. When they cause damage they give the residents of pittance in compensation."
Winten did not respond to questions about the criticism.
Hunter Community Environment Centre coordinator Jo Lynch said the Minmi Estate development was a prime example of how the state's planning and environment laws were failing to protect biodiversity and sideline community concerns.
"The urban developments currently proposed for the Newcastle and Lake Macquarie area will provide more housing at the cost of rural character and biodiversity, but it doesn't have to be that way," she said.
"To increase housing supply and avoid the extinction of iconic threatened species like the Squirrel Glider and Powerful Owl, maintaining and expanding adequate bushland corridors and incentivising developments to occur on cleared land is crucial.
"The NSW Government and Local Councils must prioritise the urgent reform of the Biodiversity Conservation Act 2016 and implement the recommendations of the scathing independent review of our states environmental protection laws tabled by NSW Environment Minister nine months ago now."
