The ACT government said preliminary tests had shown no sign of asbestos at the proposed pond site, in a reserve near Dry Street and Service Street.

But long-time residents said they have been pulling chunks of rubble and asbestos out of the site for years.

Jeremy Thompson found a large piece of asbestos as he walked through the reserve a couple of weeks back.

"The spot they have chosen is precisely where, when the suburb was built in the 1960s, the refuse, building rubble and offcuts were dumped. The material included asbestos.

"When I first moved here I noticed the rubble and sink holes all through the reserve and, over the years, made it my business to clean it up.

"I've found wire, metal, wood, lots of concrete and – worryingly – asbestos."

ACT government records described the proposal – which has an "approved" project status - as a rain garden and stormwater catchment area.

Mr Thompson said that, in principle, he had no objections to the government's plans.

"I'm actually in favour of it. It seems like a good idea to me.

"But not at the expense of digging up the ground and possibly sending asbestos everywhere."

The government did not appear to have comprehensively tested the ground before progressing work on the pond, Mr Thompson added.

Nicky Bazley-Smith grew up across the road from the reserve and remembered it being used as a tip for building material.

"I remember the dump being there. We used to grab stuff out of it to build cubby houses and things.

"It ran for quite a way. And when they built [Melrose Drive] they spread a lot of the material around."

She said she was concerned about the lack of consultation around the proposal, especially considering the possible presence of asbestos in the ground.

Another issue with the pond project was the removal of trees that acted as a sound barrier for the busy roads nearby.

"Those trees were planted specifically for the noise from the road," she said.

"And we've already lost a number of them to other projects."

An ACT government spokeswoman confirmed initial tests had identified the presence of landfill near the pond site, which had since been re-sized to avoid any issues.

The same testing had not shown any signs of asbestos contamination.

"In early planning stages, an initial contaminated soil assessment was conducted," she said.

"Landfill was confirmed and the rain garden was re-sized to avoid construction on the old landfill site. No contaminants were found.

"Further geo-technical investigation as part of the detailed design process will tell us more about the site and any associated risks."