A community group at Cooranbong is considering legal action, after a water treatment facility was approved for the area.
The Cooranbong Business Community Alliance says the facility, to be built on Freemans Drive, is unsuitable for the town centre.
Lake Macquarie Council approved the Recycled Water Centre last week.
Meanwhile, the community alliance argues the location for proposed twin service stations on the M1 should be reconsidered.
Submissions for the $30-million project have been extended until next month, with the Joint Regional Planning Panel to make the final decision.
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