Families have launched a campaign to stop houses being built at Parklands in Malmesbury.
Objectors met Wiltshire councillor Simon Killane in a double-decker bus run by charity Open Blue on Thursday.
They are concerned that Westlea Housing Association has applied for planning permission to replace ten garages with five houses.
The site is used by the Open Blue community bus that visits every Friday and provides a place for people of all ages to meet up.
Following the meeting, Coun Killane called in the application for further scrutiny by councillors. He said: “I’m very concerned about over development.
“Malmesbury is a beautiful old town and seems to be becoming a target for it.”
He added that visits by the Open Blue bus were a valuable asset to the community.
He said: “Residents are concerned about more traffic, less space and a loss of privacy.
“But they are also worried about losing their bus.
“The Open Blue bus is a fantastic resource, it is a place for people to meet and also provides lots of activities for all ages like cooking, computer games and internet access.”
Last night members of the planning committee at Malmesbury Town Council agreed to add their weight to the objections.
They do not have the final say on planning applications, but their views must be taken into consideration by Wiltshire Council.
Julian Butler, who lives in Parklands, said residents are concerned about access for emergency vehicles and the lack of parking space.
“Parking is already tight and emergency services and even dustcarts may struggle to get through,” he said.
He added: “The site is one of the few open spaces where parents are happy for their children to play safely.
“The bus parks there on a Friday and is great for mums and toddlers, elderly people and children.”
Westlea development projects manager Julian Kent said the new homes would include on-plot parking and that tenants of the garages, some of which were empty, were being offered space in other garage blocks nearby.
No specific plans had been made for the blue bus because it did not park as part of an official arrangment.
He said the development was a great opportunity to provide affordable homes for the ever-increasing number of local people unable to afford their own houses.
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