Councillors are being asked to refuse planning permission for 195 new homes in Tranent after being told there is no more room in the town's cemetery for new residents.
Developers Mactaggart and Mickel Homes want to build the housing on land at Windygoul on the town's Elphinstone Road along with business units, a shop, restaurant and bar.
However a meeting of East Lothian Council's planning committee this week will be asked by officers to reject the plans.
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And councillors will be told Tranent and Elphinstone Community Council has raised objections over the pressure of more housing on the town's services - pointing out that even the cemetery is full.
A report to the committee says the community council raises concerns about the impact on the local infrastructure.
They said: "There is already pressure on Tranent Medical Practice to meet current demand and following discussion with the surgery the community council are told that no improvement to the facility is being considered to accommodate this or other proposed developments.
"The current cemetery is already struggling to meet demand and it is no longer possible to purchase plots there."
East Lothian Council has said it is working to open a new cemetery in the town.
A spokesperson said: "Tranent cemetery is unable to be expanded due to adjacent ground conditions. The council is seeking to deliver a new cemetery and work on this is ongoing.”
Planning officers are recommending councillors refusing the housing proposals which include 171 houses and 24 flats on agricultural land which has been earmarked in the council's own Local Development plan for employment use.
Developers are proposing 49 affordable housing units for social rent and 59 homes for mid-market rent, leaving less than half for private sale.
But planning officers say: "The benefits of the proposed new business and other commercial units and the applicant’s proposals to deliver 55% affordable housing on the site do not outweigh the loss of the remainder of the allocated business site to housing."
"If approved the proposed housing development would set an undesirable precedent for the development of new housing on land elsewhere in East Lothian that is allocated for employment use."
The planning committee meets on Tuesday this week.
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