Residents living close to what has been dubbed Teignmouth's 'unofficial bypass' have condemned plans for up to 140 new homes which, they say, will only add to congestion.
There are also concerns about the loss of open fields and the impact on wildlife, including the rare and protected cirl bunting.
Exeter-based M Baker (Property Services) Ltd has applied to develop 5.1 hectares (13 acres) of pasture off New Road.
The same firm recently won permission for 150 homes in Dawlish after a battle with Teignbridge Council about the percentage of affordable housing and contributions to community services.
The New Road site is currently used for grazing but is bordered on three sides by existing residential development.
Part of the plot was identified for new homes in the old Teignbridge Local Plan, even though a portion of it has County Wildlife designation.
The developers have said the land could provide in the region of 139 new homes, although the exact figure would be a matter for negotiation.
In a report which accompanied the application, submitted to Teignbridge Council last week, it suggested the properties could be a mix of houses and apartments, some three storeys high.
The estate would be designed so it 'fits in well with the local vernacular'.
Schemes of this size are usually expected to include at least 30 per cent affordable homes.
In the Dawlish scheme, the final figure was 40 per cent.
The firm canvassed local opinion before submitting its latest application and sent letters to 110 households in and around New Road.
It received 29 responses, 26 of which expressed opposition to the proposals.
Among residents' concerns were the implications for traffic congestion on what one resident said was Teignmouth's 'unofficial bypass'.
Many of those who commented said they thought an increase in the accident rate was likely.
Heavy summer traffic on the B3199 Dawlish Road was also cited as a problem.
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Others bemoaned the loss of open fields and the effect on wildlife.
A 2004 survey revealed the presence of a breeding pair of cirl buntings.
The firm has said that all the concerns can be addressed and that when it last submitted a planning application for the site the only reason for its withdrawal was a lack of agreement on affordable housing.
The application is likely to go before district councillors in the new year.