A planning application for around 220 houses south of Southwater could be submitted to the council later this year.
Wates Developments has submitted a scoping report to Horsham District Council for land west of Mill Straight, and hopes to submit an outline planning application later this year.
Although an illustrative masterplan is still being prepared village group Keep Southwater Green fear that plans could be for around 220 homes.
Martin Leach, of Wates Developments, said: “We are looking forward to developing a positive relationship with the local community and to foster a constructive dialogue on how the development proposals may be able to help with local aspirations.
“As a family-owned business, we have an excellent track record of working with local communities, for mutual benefit. A number of matters of local interest have been identified, including a reduction in the speed limit on Mill Straight and preservation of the ancient woodland.
“These and other matters of local interest will be considered and we hope to be able to prepare a locally-informed masterplan for the site.”
Ian Thwaites, of Keep Southwater Green, said: “We do know that further building in Southwater will not be included in the proposed District Plan to 2031.
“We would expect this new proposal therefore to be rejected by HDC.
“Technically the land may be in Shipley parish but it is on Southwater and its facilities that the burden will fall. Keep Southwater Green will be strongly opposed to any such development.”
For more information on the scheme email email@example.com