Frustration is also boiling over about delays in the council's community consultation process for the town, with mayor Pat Griffin admitting it is "incredibly slow and frustrating".

Ballan residents Warren and Jennifer Dale said inadequate council laws meant rural patches were being earmarked for subdivision into tiny lots.

"If we let the developers do what they want to do we'll end up with another Bacchus Marsh, Werribee or Wyndham Vale. It's not conducive to having a country town, which is what we're all here for," Mr Dale said.

The couple's Hall Street property backs on to Myrtle Grove Road, where much land was rezoned 20 years ago from rural residential to residential one, meaning owners can seek to subdivide into blocks as small as 300 square metres.

Mrs Dale said she was worried about a second development in Myrtle Grove Road for another 20 lots, where it was proposed to fill in a major creek taking run-off from the Western Highway.

"This is just plain stupid. The creek is a natural watercourse that feeds the Werribee River, and we all know you cannot divert a natural watercourse without major problems somewhere."

Cr Griffin said the council had not yet received the subdivision application.

"Owners have the right to subdivide into small blocks. State government is the overriding authority ... we are trying to put some overlays in place, but Ballan was probably screwed 25 years ago. Now you can't rezone land without a long process."

Resident Janine Mitchell said she moved to Ballan for peace, quiet and rural views.

"Why then am I hearing about surveyors, existing plans for tiny block sizes and seeing the destruction of our quiet rural existence right in front of our noses?"

Cr Griffin said he feared it could be too late to stop over-development and destruction of Ballan.

"One landowner subdivides a lovely, semi-rural type block in a street of 10 or 12 bits of land for 12 or so small houses, makes a killing, neighbours lose their amenity and then like dominoes each block gets divided as the owners have little choice but to sell and move if they want to recover lifestyle."

The community consultation program will be discussed by the council tomorrow night.