Gateshead Council is considering building 751 new homes in a greenbelt area in Whickham, as part of a larger housing plan.
They're hoping to build 13,200 new homes across the borough over the next 20 years to meet population growth.
They say the population has grown by 9,000 people in the last 10 years and the demand for homes is also growing due to reductions in average household sizes.
The Whickham site is just one of many that the Council are considering, however the latest proposals have angered residents and almost 4,000 have signed a petition against the new plans.
They're concerned that a new housing scheme would seriously impact the greenland around Whickham and would have a negative impact on the environment, as well as causing a high level of congestion on the A1.
Gateshead Councillors won't narrow down the number of potential sites until 2013.