While council voted to refuse to grant the permit at its November 24 meeting last year, the applicant has appealed the decision to VCAT for review by a planning panel in Melbourne.
Charlene Warburton, a strong objector to the proposed subdivision, said she was disappointed when she received the news.
“That was absolute relief to find out council had opposed it and denied the application,” she said.
“Finding out that they’re going to VCAT is just heartbreaking.”
The objectors’ main concern centres on the subdivision’s density: the proposed 10 residential lots on the rural property.
“You need new people out here, but you don’t need an inappropriate subdivision,” Protect Our Farms president Bill Chisholm said.
“You could have four or five lots there and that would be sufficient.”
Ms Warburton said it was the size of each lot, if the property were subdivided into 10 lots, that concerned her.
“The first thing that we all probably thought (when we first saw the plans) was, ‘that’s ridiculous’,” she said.
“My property, for instance, is a half acre. I feel like my property is not big enough, and these properties are slated to be a quarter acre or less.
“The only properties in Pyalong that are under half an acre are over probably 70 years old, so they don’t really meet the requirements of today.”
Many of the objectors agreed that the number of lots would mean that the subdivision wouldn’t meet current septic system requirements.
Linda Barrow, who runs the local general store, added that the nature of the block, being that the “main drain of Pyalong” runs through it, would lead to water run-off across the new lots.
“It doesn’t even have to be a lot of rain before you see water across the road because that’s where the drainage is,” she said.
Ms Barrow also expressed concerns about potential impacts to the small town’s country feel.
“If you drive anywhere between Kilmore and Heathcote, except within a township, you’re not going to see anything but farm fencing,” she said.
“My theory is we’re going to have all of this beautiful farm fencing all the way along, and then (on the property), we’re going to have wooden fencing or paling fencing, and it just won’t fit with the town’s aesthetic.”
With a proposed entry point located beside the small street of intersection on to the Northern Hwy, and on a stretch of road with a solid white line, concerns relating to traffic have also been raised.
Pyalong CFA life member Leone Ryan expressed worry that residents making illegal right turns near the fire station could create dangerous situations for emergency vehicles.
“I was concerned, as well, that people would be coming around the corner because the CFA has to race down that street,” she said.
A decision is yet to be made on the matter, and a number of the objectors will soon attend a hearing before a planning panel in Melbourne.
The Telegraph has contacted the applicant for comment, but has not received a response.