PYE Homes has launched an appeal to build 100 homes off of Park Road in Selsey.
The proposals were turned down by Chichester District Council officers in July after objections from residents and parish councils.
Now the case will go to appeal, where a planning inspector will decide the fate of the site.
The site, the land north west of Park Road, neighbours Park Farm which was recently granted permission for 50 homes at appeal.
Chichester District Council officers refused the application for 100 homes on the grounds that the plans did not demonstrate an acceptable mix of private and affordable homes, and that the scale of the development was inappropriate for the town.
Other objections included the fact the development lumped all the affordable houses together, and the impact on Pagham Harbour, as well as a failure from the developer to make provision for the infrastructure needs of the town.
See next week’s Observer (October 3), for a full report.