More than 80 objections to a proposal for 300 new homes in Market Rasen have now been lodged with West Lindsey District Council.
Residents are worried about plans by Chestnut Homes to build on land off Caistor Road.
Many are concerned about pressure on infrastructure, extra traffic, flooding and a lack of job opportunities.
Objections have come from Market Rasen MP Sir Edward Leigh, Network Rail, county councillor Lewis Strange, campaigners Rasen Action Group, Market Rasen Town Council, Middle Rasen Parish Council and West Rasen Parish Council, as well as dozens of residents.
In a letter to the district council, Network Rail town planning technician Matt Leighton said: “We understand that the proposed site includes a right of way which, if fully established, would create a pedestrian link between the proposed housing and the level crossing.
“The safety of level crossings and crossing users is of paramount importance to us and we would have serious concerns over any development that would result in an increase in crossing usage and, therefore, affect the risk of the crossing.”
Sir Edward Leigh has urged the council’s planning committee to reject the application.
His letter states: “With hundreds of new homes having been built in Market Rasen over the last decade and beyond, nothing has been spent on developing infrastructure to cope even with the current level of demand, let alone this development were it to be approved.”
Sir Edward said the site is not allocated for housing under the current local plan and is therefore open countryside, which would not support residential development.
A Chestnut Homes spokesman said: “Prior to submitting our outline planning application for this site, we held a detailed public exhibition in Market Rasen Festival Hall.
“This gave people the chance to come to see our proposals, speak to our team and give us their feedback.
“Following the event, a period of public consultation took place, and comments submitted to us during this time were collated and taken into consideration as we prepared our application ready for submission.
“Everyone has a further chance to comment on our proposals now that a formal application has been lodged.
“Any impacts of development are considered through the planning process, and appropriate mitigation measures are generally agreed before a planning permission is granted.”