UP TO 130 homes could be built on land South of The Hawthorns off Elson Road, Ellesmere.
Outline plans have been submitted to Shropshire Council for the development, which would include 13 affordable homes.
The land, which is currently used for agricultural purposes, would be accessed through The Hawthorns and nearby Almond Drive.
But nearby residents said the housing development will increase traffic on the B5068 Elson Road which leads into the town centre.
Paul Goulbourne said: “The majority of commuter and shopping journeys are through Ellesmere.
“The very fact that up to 260 extra cars each day will pass the primary school and transit the restricted road width at Trimpley is unsafe.”
Planning documents say issues surrounding the width of nearby Trimpley Street have been discussed with the Highways Authority. Road problems have also been brought up in the Site Allocations and Management of Development (SAMDev) plan for the town.
Resident Linda Clayton raised concerns over the doctors surgery and schools, adding: “It's already almost impossible to get an appointment when needed and when you get there you can't park. Both schools are overcrowded and cannot accept all the pupils who apply to go there so where are these new children supposed to go?”
Three separate sites off Grange Road, Elson Road and the station building and yard were removed from the SAMDev in favour of a larger development site near The Wharf, where more than 200 homes are being built.
The determination deadline for this application is May 27.