Early plans to build 1,750 new houses on the borders of Northampton outside of the boundaries for borough council taxes were submitted this morning.
A planning proposal by Bloor Homes to develop two greenfield farms near Duston was made to Daventry District Council this morning.
But the 20-year project for the sprawl of new homes stops short of Northampton Borough Council's boundaries.
Councillors are concerned the strain of the new population would arguably affect Northampton while Daventry and South Northamptonshire collect the tax benefits.
Barry Frenchman, ward councillor for Harlestone, which is next to the earmarked farms, said: "I hope it will be a sustainable urban extension. There's a demand for houses and Harlestone has come to accept there will be a development here.
"I will try very hard to make sure residents get the most benefit out of it then can. We will go over the plans with a fine tooth comb."
The two farms, west of New Duston, are bordered by Roman Road, New Sandy Lane and Port Road.
The first phase of the 20-year-project aims to build 600 homes, primary school and space for shops within five years of approval.
It comes as part of the Joint Core Strategy for Daventry, Northampton and South Northamptonshire.
A spokesman for Bloor Homes said: "After consulting with local stakeholders, we have taken great care in developing these plans for a new sustainable community. In addition to providing quality local housing that is urgently needed, this development will offer a range of benefits for the local community."
"Payments secured by the councils through planning obligations and the Community Infrastructure Levy (CIL) will help to pay for necessary infrastructure improvements within all three local authority areas."
Bloor Homes is currently marketing the 1,000-house Buckton Fields development near Whitehills and the Hunsbury Fields development in south west Northampton.
Councillor Matthew Golby, who sits on the West Northants Joint Strategic Planning Committee, said: "I understand the need for building houses and creating school places.
"I think a lot of people will live on the west side of Northampton to access the motorways and not so much to use the town.
"We want all local developments to benefit the town and be community focussed."