The scheme, planned for the fields of Foxhole Farm in Bolney, could mean 200 homes built on the site.
People living in the village said this could create a safety risk and could increase traffic congestion along the narrow country lanes.
They are also concerned about lack of infrastructure to support the new houses, poor transport links and not enough health facilities in the area.
Villagers claim they were not listened to during the first round of consultations.
READ MORE: Neighbours’ anger over proposal to turn house into six-bedroom HMO
They have now formed the Bolney Action Group (Bag) to put forward their concerns to Mid Sussex District Council during the second consultation stage.
With the support of the Bolney Parish Council they have raised awareness through a website, flyers and banners.
Duncan Crocker, of Bag, said: “Bolney is a historic Sussex village with 45 listed buildings, including a Grade I parish church.
“A development like Foxhole Farm would permanently harm the nature of our village and its rural context.
“We believe this will be a loss for everyone in Sussex, not just village residents.”
The public consultation ends on February 23.
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