Parish councillors in Bardney admit they have concerns about a new housing development which could lead to 170 new homes being built.
Chestnut Homes is looking to develop a site at Manor Farm off Horncastle Road.
The homes would be built in various phases with a final figure of 170 - subject to planning permission.
The company has already held a public consultation and parish councillors discussed the application at a recent meeting.
Council chairman Charles Shaw said that while they had not officially objected to the proposal, they did have some concerns - not least regarding access and drainage issues.
He revealed the council had written to planners at West Lindsey District Council, outlining the concerns.
He said he was aware some residents were complaining Bardney already had more than enough new homes but stressed that was not a reason to object to further applications.
Coun Shaw added: “As a council, we are not against further development in Bardney. If we want to see the village thrive and facilities improve, then we need new homes.
“A shrinking village is not going to get better facilities but we have to ensure any new homes fit in with the character of Bardney.
“People are concerned about the access to this development - and things like drainage and sewerage.”
*To view the proposals, visit planning.west-lindsey.gov.uk/planning using reference number 131498.