Placards could be seen protesting the proposed development on Clifton Rd yesterday.
Meeting organiser Noeleen Skelton said residents were concerned about the plan's scale.
"Te Awanga only has 300 houses and he [Mr Nilsson] is wanting to add 120."
The development would threaten the friendly and tight-knit character of the community, Ms Skelton said.
However, Mr Nilsson said his "very eco friendly" proposal had been written in such a way that it preserved the Te Awanga's character: "I want to live here for the rest of my life, and I don't want to leave a legacy I would be ashamed of."
Last year the Te Awanga Downs Family Trust submitted to the Draft Hastings District Plan to re-zone their rural and plains zones as a residential zone, in order to subdivide the land. The submission was deferred by the council.
Last month, Te Awanga residents received advice from the council that the family trust had requested the deferment be uplifted, allowing development within the zone without further public consultation.
Ms Skelton said residents were also worried about the sewage-treatment plant.
"We're all on septic tanks out here. If there was a sewage-treatment plant on the hill above the development there'd be a huge rates increase. We'd all have to pay to connect to it."