People opposed to town centre bail hostel plans are demanding a public inquiry.
Thousands of families in Chester-le-Street are planning a new offensive after probation service chiefs announced they planned to appeal against refusal of planning permission.
Probation chiefs hope the district council will agree to sell its land behind the Civic Centre if the appeal is successful, but cannot compulsory purchase the site.
About 150 protestors at a meeting in the Greenbank Club this week agreed to lobby for a public inquiry into the controversial plans for the 25-bed hostel.
Bill Dinsdale, chairman of the protest committee, told Tuesday night's meeting: "We will accept nothing other than a public inquiry.
"We understand that controversial matters are almost always dealt with by public inquiry, and in Chester-le-Street this is the most controversial issue for years.
"We expect the appeal to be lodged in the next week or so which gives us time to lobby all the businesses and shops in the town.
"It's not just residents who have cause for concern over these plans - shopkeepers must be aware of an increase in potential shoplifters around if it is built."
Chester-le-Street District Council bosses are known to favour a public inquiry because of the strong public outcry from people all over the district.
Once the probation service lodges an appeal with the Planning Inspectorate, that appeal can take one of three forms - written submissions from all parties, a hearing or a public inquiry.
Should the probation service choose a hearing or written submissions, the inspectorate can decide it is too controversial and must go to an inquiry.
The council leader, Councillor Malcolm Pratt, said: "We will deal with the appeal if and when it happens, but we are still waiting for official notification.
"There is a strong case for a public inquiry as there has been so much public interest in this matter.
"But that decision will be made at the appropriate time when we have received details of the grounds of their appeal."
Of more than 100 bail hostels in the country, most have won approval only on appeal
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