The Dunedin City Council's hearings committee yesterday heard arguments for and against the development before adjourning the hearing to consider its decision.
Mary Wijesinghe, of Dunedin, has applied for consent to establish the centre at 66 Springhill Rd, Mornington.
The centre would offer a Montessori-based education programme catering for up to 20 children, aged 2-5, from Monday to Friday each week.
Three neighbours granted written approval before yesterday's hearing, but limited notification of the consent application still resulted in six of seven submitters opposing the development.
Yesterday, the committee heard evidence from neighbours Nathan Watt, Sam and William Cockerill, who lived at 61 Springhill Rd, opposite the proposed development site.
They argued the development would ''greatly detract'' from the area's residential character, by adding to noise and traffic in the street.
The Mornington Kindergarten and Mornington Presbyterian Community Centre were also located in the area, ''but these cannot be seen or heard'', they argued.
The development would be opposite their own home, which was raised and would look ''directly on to'' the proposed centre.
Three of the four occupants worked weekends, and enjoyed sleep-ins during the week, which would be disrupted by noise from the new centre, they feared.
''It is likely that many conversations will take place between parents dropping off their children in the morning. This will unfortunately take place metres from our bedroom window.''
Another neighbour, Vivian Pullar, also worried about traffic and noise problems arising from the centre, which was in an area ''already at a limit of what the area can actually absorb''.
''I believe that it will result in a decrease in the amenity value as noise and traffic congestion increases and road safety becomes more of a concern.''
However, consultant planner Keith Hovell, in written evidence for the applicant, said council staff had assessed the development's traffic effects.
They were satisfied traffic effects could be managed if a traffic management plan was prepared and vehicle access to the site upgraded.
District plan noise limits also did not apply to preschools between 8am and 6pm, and an acoustic fence or noise management plan was not required, he said.
Despite that, a ''solid'' fence of between 1.4m and 1.6m would be built.
Committee members adjourned yesterday's hearing for a site visit.