A popular West Sussex caravan park could be turned into 100 homes, to the alarm of van owners who call the site home.
Moves to use Golden Sands in Lancing for affordable housing have sparked objections.
Adur District Council will meet on Tuesday to discuss whether the six-acre site should be developed.
A council Press officer said caravan owners normally rent their pitches for a year at a time and the facility would close near the end of 2004 if it is sold for development.
The proposed development, still in its early stages, follows a council report highlighting the need for affordable homes in Adur.
In a written statement, the press officer said: "The future of the park has been under consideration at various times.
"Selling it was an option the council wanted to look at in two or three years' time. This has now been brought forward because of the escalating costs involved in renewing the cesspits.
"It is no longer financially viable to carry out these works which were scheduled for this year."
The Golden Sands Residents' Association, which wants the facility kept open, met on Tuesday night.
Spokeswoman Kate Connors said: "I brought the pitch at Golden Sands as a weekend and holiday getaway when my husband had a run of ill health that prevented us from going too far with the children.
"It is viewed as a child-friendly site, is relatively safe for them to play and have fun and has become our second home.
"Others stay throughout the season and make alternative arrangements once the site closes.
"Some go abroad to other holiday homes and some live in areas like London, and other built-up areas, and come to escape by the sea as they have done for many years.
"While I appreciate the need for affordable housing - I am in the teaching profession with a young family - I do not feel Golden Sands is the right site for this type of project. It is widely known as a flood risk.
"There are other sites that could be used that will not mean an upheaval of many people from a place that they call home, a place that holds many happy memories.
"The residents of Golden Sands are trying to maintain the site to the standards that have been upheld for many years. This has recently proved more difficult since the site manager no longer resides here as was always the case in past years."
Peter Latham, Adur's corporate director of environment, community and housing, said: "This could indeed be a great opportunity to have more homes built in Adur.
"People using the caravan park, most of whom are visitors to Adur, will understandably be sad but I hope will understand why we are looking into this. Having enough affordable homes for people who live in Adur is a key priority for this council."
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