Highways chiefs say a housing development would push traffic flow over the limit.
Developers want to build a rural hamlet on the derelict Blue Circle Cement works site at Upper Beeding.
All traffic from the proposed 84 homes would have to use the single carriageway A283, which has a maximum capacity of 1,400 vehicles per hour in one direction.
The housing development is being contested by Horsham and Adur District Councils.
And investigators at West Sussex County Council say the plans would increase traffic to 1,458 vehicles per hour in the morning rush hour. This would equal about 60 cars per hour too many - one per minute - at the busiest time of day.
The figures came to light yesterday during a public inquiry into a bid by Callstone to develop the site.
Duncan Barratt, group manager for development control within the Highways and Transport Department at West Sussex County Council, said the road was already stretched to capacity.
Barrister Jonathan Clay, representing Callstone, said: "Is the difference between permitting the plans and not permitting them down to this one vehicle per minute?"
Mr Barratt replied: "There has got to be a cut-off point where traffic is concerned."
Mr Clay also outlined improvements which would be made to public transport in the area if the entire development, which includes a restaurant and business park, went ahead.
Callstone plans to give up to £150,000 to increase bus services from once to three times an hour between Shoreham town centre and Steyning, as well as paying to improve cycle tracks and Shoreham rail station.
A report made by Mr Barratt on behalf of the council said the proposed housing development did not comply with transport policy and recommended permission be refused.
The inquiry, at the Steyning Centre in Steyning, is due to last until the end of the month.
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