They believe the 282-lot plan does not suit the area's character and could reduce the suburb's property values.

The developer, though, asserts that the plan meets planning rules and demand for affordable housing.

Residents say the plan was using a state planning policy "loophole" to get past Maitland City Council's zoning laws that aim to maintain the area's rural landscape.

"This development isn't rural, plain and simple," Windella Action Group spokesperson Warren Baldacchino said.

"We're fighting for that semi-rural lifestyle that we've paid for."

He said the proposed development was "completely at odds with what Windella stands for".

"People in Windella have paid quite a lot of money to live here."

Council zoning plans show the R5 large lot residential zone, which contains the residents' land, aimed to "minimise conflict between land uses" - including "adjoining zones".

Development manager Chris Speek, of Mavid Group, said the proposal was "carefully designed".

Mr Speek said the plans would "provide an interface between the adjacent industrial lands, adjoining airport land and the residential lots of Windella".

"Strategic expanses of existing trees and vegetation have been retained within large setbacks and open boulevards," he said.

"This is provided to keep the existing character and maintain, even enhance, neighbour amenity and outlook."

The action group has employed a town planner and lawyer to help them oppose the development.

The group said it would not oppose a development with "one-acre blocks like the rest of Windella".

Mr Baldacchino said young families bought blocks in the suburb to "enjoy with their kids".

"The kids go to school, ride bikes on the road and play soccer together."

The development site - bounded by River Road, Denton Close and New England Highway - is near Maitland Airport.

Mr Baldacchino said Denton Close, where existing homes were built, was "like a country lane".

"It's a quiet, tree-lined cul-de-sac with wide verges and about 12 houses," he said.

The residents were also concerned traffic from the estate would travel through Denton Close.

However, Mr Speek said the estate's traffic would be routed to River Road and the proposed Denton Close access would have a locked gate "restricted for emergency services only".

Mr Speek said the site was part of a "growth corridor".

"The layout of this community is compliant with the current zoning, which has been in place for over 10 years," he said.

He added that the plans were "in keeping with local and state policy to deliver a range of housing types" for the area's growing population.

While manufactured home estates can carry a stigma, proponents say there is demand for them.

People seeking to downsize often choose the estates to free up capital to semi-retire.

Developers seek rural land connected to services for the estates because it is cheaper than residential land. This allows them to set lower prices than standard housing.

Mr Speek said the Windella homes were planned to be on sale for about $400,000, with a $200 a week fee to rent the land.

"There are limited lands available to support our growing city," Mr Speek said.

"We should be embracing support for new homes to supply the increasing need for housing.

"We're offering a retirement place for the community that is in close proximity to existing and expanding centres."

Mr Baldacchino, though, raised concerns that the estate could cause property prices to fall in adjoining areas.

"Our property is a retirement package for us," he said.