A former councillor said proposed changes to protect sand resources near Trafalgar "should sound alarm bells."
Darren Wallace, addressing the December Baw Baw Shire meeting, said the draft planning controls would impact 140 properties and 6000 hectares of high quality farm land in the region.
Mr Wallace urged councillors to "say no to the change."
"Farmers wanting to develop or improve their land, or even change the use of the land, will trigger a planning permit and a fight with the state," he warned.
"This will stifle investment and turn high quality farmland with all sorts of potential into simple grazing paddocks, with farmers paralysed by the state government."
After his submission, councillors unanimously voted to lodge a submission to the Department of Transport and Planning.
Both Crs Kate Wilson and Brendan Kingwill said council's submission would provide a chance to gain clarity from the state government on the draft planning controls.
The Strategic Extraction Resource Area (SERA) in Trafalgar contains state-significant sand resources and offers long-term production potential, the draft document states.
"The draft planning controls aim to protect current and future quarries from land uses, development and subdivision that could inhibit long-term supply of extractive resources within the Trafalgar SERA," it says, noting the proposed changes would affect the Baw Baw Planning Scheme.
The SERA near Trafalgar covers a large area, roughly from Old Sale Rd in the north, Willow Grove Rd to the east, a little north of North Canal Rd in the south and the Shady Creek to the west. However, not all land within the area is included.
Mr Wallace said nobody knew what the full ramifications of the changes.
"Say no to the change," he said. "The state won't listen, but why not take a stand on behalf of your community?"
When asked by Cr Wilson how he would propose council take that stand, Mr Wallace replied "say no."
"Ask the state government for reasons where the current ESO (Environment Significance Overlay) is failing that they need these stronger powers put in place," Mr Wallace said.
An officer report said council's submission, prepared by officers, would seek existing exemptions for building and works within the ESO to be reinstated, labelling the change "an additional burden on landowners."
The report raised concerns that some uses, buildings, works and all subdivisions would require state government approval.
"It is unknown how applications will be assessed and how they will be scrutinised, introducing a level of uncertainty for landowners."
In addition, the report noted some land uses listed in the draft planning controls were prohibited in the farming zone; development applications for extractive industry would be exempt from notice and review requirements; and, an administration burden placed on council to notify the Registered Aboriginal Party on new extractive industry applications.
The report also noted that the Department of Transport and Planning held public consultation via the Engage Victoria website from October 2 to November 18, including a drop-in session at Trafalgar Community Centre on October 23.
Cr Wilson said clarity would be important moving forwards.
"There does appear to be some conflict and vagueness in the controls that have been provided to date," Cr Wilson said.
Cr Kingwill described the document as "amateurish."
Noting his appreciation for the efforts of council officers to seek clarity, Cr Kingwill said "we might need to see if we can do a bit of a fight back."