Changes to zoning laws on the NSW South Coast would put the $9 million local oyster industry at risk, the council has been warned.
Eurobodalla Shire Council's Rural Land Strategy has been with the NSW government waiting for approval since December.
Nature Coast Alliance joint convener Kathyrn Maxwell said the strategy would see the destruction of the shire's natural landscape, which relies heavily on tourism.
"In 10 to 15 years the Eurobodalla nature coast will just be unrecognisable," Ms Maxwell said.
"[The strategy] makes it a lot harder for our landscape to really survive."
When the shire - which includes Batemans Bay and Moruya - released the proposal for public comment it was met with concern by several state agencies.
Locals are concerned it would see farmers carry out uncontrolled grazing, cropping and land clearing on rural and environmentally zoned land in the shire.
Other parcels of land across the shire are set to be rezoned to allow "extensive agriculture" with council consent, and at the same time exempting them from laws protecting native grasslands.
Subdivisions and development would also be permitted on rural land, requiring large bushfire protection zones around properties resulting in further land clearing.
It would also open up the possibilities for development on rural land, with up to 250 new dwellings on lots across the shire's 38,000 hectares of land.
The NSW Office of Environment and Heritage, the Department of Primary Industries, the Rural Fire Service and South East Local Services all raised concerns about the proposal.
In a submission to council, the industries department objected to one of the proposed rezoning strategies that would allow stock to graze on land zoned E2.
E2 land includes riparian areas, like river banks, wetlands and waterways, traditionally marked for conservation.
However the council said grazing would not be permissible on land identified as environmentally sensitive, which the vast majority of the E2-zoned land was.
Faecal contamination of waterways feeding Eurobodalla's oyster industry would be damaging to oyster farmers across the coast, the department warned.
"Faecal contamination from stock grazing adjacent to and upstream of oyster leases is an ongoing issue for [the fisheries department]," the submission said.
"It results in prolonged harvest area closures and financial implications for the oyster aquaculture industry."
The high water quality in three local rivers - the Clyde, Tuross and Wagonga - allows for oysters to be sold for human consumption directly from the river.
The environment department also raised concerns about changes to permitted activity in environmental zones.
In its proposal, the council pointed to how grazing and bee keeping was already allowed on some land, thereby further, low-level agricultural use would have a small impact.
"These activities have a much lower impact that cropping and pasture improvement," the environment department's submission said.
The NSW Rural Fire Service had multiple concerns about the bushfire risks created by the proposal, but also said the council had not undertaken a strategic bushfire study.
The service said it had written twice to the council regarding their concerns over the draft strategy.
It had also attended meetings and inspections, but council had not addressed the concerns in the final strategy that went to government.
Council confirmed it still had no strategic bushfire assessment.
Ms Maxwell said the councillors, and steering committee at the helm of the proposal were all large, rural landholders.
She said the shire relied heavily on its tourism industry, and was also home to a large oyster industry. It was worth $9 million in 2016-17, according to the fisheries department.
"Why would you jeopardise all that for just a few landholders to make a windfall," Ms Maxwell said.
A council spokeswoman denied committee members would personally benefit.
"Committee members were expected to disclose information and identify conflicts of interest in all decision making," the spokeswoman said.
The spokeswoman pointed to one local oyster stakeholder, the Clyde River Shellfish Quality Assurance Program Committee, who had been consulted and were satisfied the proposal addressed their concerns.
There was about 38,000 of native vegetation on private land in the shire, Ms Maxwell said.
The strategy moves the explicit protections regarding the vegetation to "advisory", allowing developers and council to make the ultimate decision on whether the landscapes would be cleared to allow development.
Council disagreed that this was a more relaxed condition.
Ms Maxwell said there were parts of the shire's planning code and environmental plans that were outdated, but this was an extreme change.
"What we don't want to go from is the best protected to the least protected."