The developer had initially planned for eight units at 47 High Street, which drew seven objections.

Objectors expressed concerns over the impact such a development would have on neighbourhood character and on existing infrastructure.

Following mediation talks between the developer, the Victorian Civil and Administrative Tribunal, council and objectors, the developer sought to revise plans by reducing the number of units and elements of the design to lessen its visual impact.

Resident Steve Charles said that while mediation had produced good outcomes, there was still more to be done.

Mr Charles claimed that despite changes in the design, three of the units' living areas would open onto his backyard.

"We fear this will set a precedent. If this development gets through, then the next one will get through, and there goes Woodend," he said last week.

Landowner-developer Mark Sultana, who lives in Gisborne and has developed units along 14 Corinella Road, Woodend, said there was a positive response to the project.

"I don't believe the first proposal was correct [for High Street], but I've said it before, we've made some changes to adapt to neighbourhood character."

Macedon Ranges Shire planning consultant Andrea Tomkinson said there was a need for unit development in Woodend.