Land near Warwick's Woodloes Park estate has been earmarked as a potential site for some of the thousands of new homes planned for the district.
An area stretching north from the outskirts of the development to Guy's Cliffe has been revealed as one of five extra sites put forward by landowners during public consultation.
But Warwick town councillor Martin Ashford (Con, Warwick North) fears
the town cannot cope with any more homes.
He said: "Warwick has already had its fair share of houses. It wouldn't be able to cope with any more as it is up to capacity.
"The land can't take a massive development. The road infrastructure is there but any more housing would be too much.
The Loes Farm land was not one of the preferred options revealed in Warwick District Council's Core Strategy plan and public consultation on the extra sites is open until April.
The authority needs to find space for around 11,000 new homes in Warwick, Kenilworth, Leamington and the surrounding areas by 2026.
Cllr Ashford is concerned this could mean losing the countryside which separates the towns.
He added: "I think any further development along the A46 corridor should be taken by Coventry.
"Coventry should start to do more in terms of housing than it is doing.
"As an area we have taken our fair share of new housing and I am worried we could end up losing the identity of Warwick. Leamington and Kenilworth."
Land in Burton Green, Cubbington and in Sydenham have also been put forward for consideration.
Cllr Chris White (Con, Warwick South) said: "It will be very interesting to hear people's views.
"We have had Warwick Gates and Chase Meadow and we have to make sure we don't lose the identity of the town.
"Our roads are already chaos and it's difficult to get from place to place so any development has to be suited to the needs of communities and not overwhelm them."
The proposed site reaches from Woodloes Park across the Warwick by-pass and around Gaveston Wood.