Developers are hoping to build 170 homes on the outskirts of Downham.
The Grosvenor Partnership 3 LP wants to put up 170 homes on land off the A1122 close to the A10 roundabout.
The firm has submitted an outline planning application for the 13 hectare site to West Norfolk Council.
A mixture of two bedroom, three bedroom and four bedroom homes are hoped to be built on the site.
The application’s design and access statement says: “In the settlement context of Downham, the scheme in the proposed location would form a sustainable and appropriate town extension, and logical step in the development history of the town.”
But concerns have been raised about the impact of the homes on the town..
Town team member Simon Prior said he was surprised the application had been submitted while the borough council is working on its local development framework, a development blueprint.
Mr Prior said: “When they have a development of that size from the town centre, we would what to see links with the town rather than an isolated estate which encourages people to go elsewhere to shop and socialise. We do need more doctors and services for people if you are going to increase the population.”
Downham councillors will be discussing the scheme at a meeting on Wednesday.