Residents say the reserve, off Dobell Drive and behind David Street, is community land.

There have been concerns raised about flooding and drainage if the land is developed.

Some residents fear they may be left stranded without access to their homes, as they have no direct street access and use the reserve as an access way on council's advice.

Resident Judy McQueeney has been living next to the reserve for 65 years and can remember her father mowing the reserve.

"I was a kid when we moved here, and all the people around the reserve took turns at mowing it and going up there to plant stuff," Ms McQueeney said.

"It's a much-loved community reserve, and it's been used that way."

Ms McQueeney said the reserve may have a caveat from the land's original development plans in 1916, which states the land is to "be held by the community in perpetuity".

With Wangi's centenary approaching in 2016, Ms McQueeney said it would be an impressive gesture by the council to allow the land to remain in the hands of the community.

"The Wangi Centenary Committee has been trying to get some land for a community garden, and the reserve is the perfect spot - it's one of the last remnants of old Wangi," she said.

In his submission to council, Wangi resident Danny Moore said if the rezoning went ahead it would leave his double garage without access.

"The garage is council approved and when I submitted the plans to council I asked would I have access, and was informed yes," Mr Moore wrote.

A council spokesperson said the area had "gravel in place to allow vehicular access to the rear of the properties that don't have access from Market Street".

"It is not a formal road or driveway nor does it follow the driveway indicated on the title plan," the spokesperson said.

Neighbouring resident and former engineer Bruce Macfarlane said developing the reserve as a residential block could potentially increase the run off and exacerbate drainage problems.

Deputy mayor Wendy Harrison said she supported retaining the land as it was.

"I can understand council's need to dispose of surplus land, but I think this land is a bit different - it's unique," Cr Harrison said.

On Monday night the issue went to council, but was deferred pending further investigation of the original 1916 subdivision title of area, assets requirements for standard of roadways to be constructed and the land's possible use as a community garden.