A growing number of Dunsborough residents are alarmed that plans to triple the town's population with new housing estates will "kill the tourism golden egg."
Residents have been shocked to discover state and local planners have identified hundreds of hectares of farmland on the edges of the town to accommodate more than 15,000 new residents.
A new community group Dunsborough2030 is planning a public meeting in September to share information and ideas regarding the town's growth.
Formed by Dunsborough residents, business owners and media identities, the group said if Dunsborough's population continued to grow at the current rate it would mean more than 20,000 residents in 15 years.
That does not include holiday homes.
The group said this growth risked destroying the town's attraction as a place to live and as a tourist destination.
There are also fears that Dunsborough and the region will be a highly attractive location globally in a post COVID-19 world and this could substantially understate the forecast growth.
Dunsborough2030 spokesman Peter Kyle said planning for Dunsborough's massive population growth was going on largely behind closed doors.
"Census figures show that Dunsborough's population has been growing at 7 per cent a year, far above the state's average," he said.
"The planners appear to be working on the basis that this growth will continue inevitably, and they must simply accommodate it with ever-increasing housing development.
"It seems nobody at planning level has asked themselves or anyone else the question, 'Hang on a minute, is this a wise or good thing?'"
Department of Planning, Lands and Heritage spokesperson said planning for Dunsborough's future growth was in its early stages.
"The City of Busselton will be undertaking a town site strategy for Dunsborough to consider the possible future growth and development of the townsite," the spokesperson said.
"The strategy will include the Dunsborough Playing Fields, which are under the management of the city.
"Concurrently, the Western Australian Planning Commission will undertake a strategic planning assessment over the Dunsborough Planning Investigation Area - identified to the south-east of the townsite in the Leeuwin Naturaliste Sub-regional Strategy - to investigate its suitability for future development.
"Abbey, Vasse North and Vasse South are also identified planning investigation areas in the region.
"Main Roads WA is planning for a 'Vasse Dunsborough Link' to alleviate traffic and safety issues related to existing and anticipated future traffic volumes on the Quindalup to Vasse section of Caves Road."
Many in the Dunsborough2030 group fear the population growth will lead to the town ending up like Mandurah's 'sea of suburban rooftops', with tourists avoiding the area in favour of smaller towns further south.
The Australian's national food and lifestyle writer John Lethlean moved to Dunsborough with his family for its small-town appeal.
He said he was horrified when he heard of plans for massive population growth.
"My first reaction was to immediately begin scanning for properties further south, like Denmark," he said.
"But we love Dunsborough. There simply must be alternatives to cramming an extra 15,000 people into town."
Dunsborough resident Jenny Fletcher said she feared that the town's businesses which relied on tourists for much of their income would drive right past them.
Dunsborough resident, actor and director Myles Pollard is set to front a social media campaign to promote a public information meeting in the town in late September.
The group has set up a Facebook page, Dunsborough2030 and a website dunsborough2030.wordpress.com to help gather community opinions and answer questions.