A flood of new homes has been blamed for increasing demand at an over-subscribed school.
Peacehaven Town Council says too many single homes are being replaced by two-for-one housing schemes or flats.
Young families moving into Peacehaven in place of pensioners are putting services in the town under increasing strain.
Seventeen local families have already been told there is no room for their children at Peacehaven Community School.
The £30 million school, which opened last September after a 30-year campaign by residents, is already over-subscribed.
The town council said the battle for school places highlighted the wider issue of dwindling space along the already overcrowded coast.
Councillor Tony Howard, leader of Peacehaven Town Council, blamed planning authority, Lewes District Council, for allowing over-development.
He said: "The district council is allowing an awful lot of in-filling. Where there was one bungalow they are allowing two or even a block of flats on the same spot.
"These are houses where one old lady might have been living where there are now families of up to eight."
Mr Howard said the town council had a policy of no two-for-one developments but its views were ridden roughshod by district officers.
He said: "Lewes District is 120 square miles but we have 65 per cent of the population in just 20 square miles and it is all along the coast.
"There are an awful lot of people who are not happy about their children not getting into the local schools.
"The situation will only get worse if this two-for-one development continues unchecked."
Director of planning at Lewes District Council Lindsay Frost said his hands were tied and added: "We do not have any proposals for major development in Peacehaven and we have to look at smaller applications like two-for-one on their individual merits.
"We can't put a building embargo on development in the way Peacehaven Town Council would like."
Turning two-for-one applications down would lead to the district council potentially losing a spate of costly planning appeals by developers, Mr Frost added.
He said: "Neighbours frequently argue services are overburdened but it's very difficult to say one more home will affect services and we have to make the decision on the impact of that one home."
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