Last week council members voted to challenge a proposal in South Lakeland District Council's local development framework core strategy, which includes building 1,760 homes in Ulverston by 2025.
Barrow's director of regeneration Phil Huck told the executive committee that the scale of the proposal is unsound. The council has also expressed concerns that the development would threaten its own regeneration plans for a marina village at Barrow Docks.
South Lakeland's interim development plans manager Steve Ottewell responded: "We have carried out a large amount of consultation. There is a wealth of evidence that led us to write the strategy in the way we did."