It's the second time this year that the stream has erupted due to heavy weather.
Iona Rd resident Jackie Bridge says she's worried about the pressure the new subdivision will have on the stream.
"We know there's going to be development in Havelock North, but we just want it to be environmentally sustainable.
Bridge says they were worried about the effects the subdivision would have on the stream, especially now that another large subdivision had been approved further up the road.
"We're also concerned about how compromised the character zone is going to become. In my mind our grandfathers and great grandfathers would be shaking their heads at what we're doing, especially when it comes to the treatment of water."
Another resident who wished to remain anonymous said he was worried about how the sewage system would cope, as well as an increase of traffic to their already shared driveway.
"We're just showing a concern that this kind of activity will cause a flow-on effect in this community, especially when it comes to the undersized sections."
Another neighbour said the new housing would just add to the problem of environmental damage to the area.
A Hastings District Council spokesperson said they were aware of the "severity of the flooding" in the Herehere Stream catchment.
"We have been consulted as part of the granting of this subdivision consent.
Council's GIS shows flood extents and flood risk mapping.
The subdivision consent has restrictions on where buildings can be located, and how stormwater is discharged."
When it came to the concern of sewage, the spokesperson said council engineers were satisfied that the existing sewage reticulation in Iona Rd had sufficient capacity to service the additional dwellings.
"Each new site is required to have a connection to the sewer reticulation in Iona Rd."
