Campaigners for Corsham railway station are angry that money set aside for its re-opening was re-allocated to build a village hall.
At a meeting at Corsham Town Hall at the beginning of the month councillors asked Katherine Park residents if they would like to see the £250,000 go towards an alternative community facility.
The outcome was that a residents' association will be set up to discuss plans for a village hall to be built on the estate.
Anne Lock has been tirelessly fighting to have the station re-opened for nearly 25 years and was outraged at the news that the district council had suggested that the money should be used for another project.
She said: "Any decision regarding an alternative use of this important Section 106 funding should be considered and made by the people of the town and not 80 of its new residents.
"It was totally understood that this money had been set aside for the station. I don't believe there will be any money if they take this away."
The Section 106 agreement refers to a lump sum of £250,000 that was given by the developers of Katherine Park to put towards Corsham Station.
Mrs Lock said: "One of the reasons we agreed to the development of Katherine Park was on the understanding that we would get a contribution towards the station."
At the meeting with 80 Katherine Park residents about a new village hall, Councillor Christine Reid said that they were being "realistic" in re-allocating the money.
She said: "If we don't get the money going it will be taken back by the developers.
"The station is going to take a couple of million and that amount of money was not going to be enough for the station.
"I have consulted the planning department to see what can be done about Section 106 money. Initially they have supported the re-allocation."
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