On Saturday, about 90 residents holding placards marched from the Kingston tennis court to State Highway 6, where the group then split to walk on both sides of the road.
The protest followed Kingston Community Association (KCA) members learning earlier this month that Kingston Village Ltd, which is planning a subdivision of 900-plus homes, intends accessing it off Kent and Oxford Sts.
KCA spokesman Jeff Rogers said existing residents are fully supportive of the housing development because it will "bring vibrancy and opportunity" to the town, but they are against construction vehicles using the main road due the impact on safety.
"Everything is on that street; the corner shop is on the corner, then as you move down Kent St, there is the entrance to the holiday park, all of our emergency services, a children's playground and public toilets," Mr Rogers said.
He said Queenstown Lakes District Council had previously given assurances to the group that the town's main road would not be used by construction vehicles, and the developer was to build an access road off State Highway 6.The council has since said "they were powerless to stop the developers from using Kent St because it's a legal road".
Residents are also concerned about noise, dust and items falling off the back of heavy machinery and trucks.
Mr Rogers said the developer is still planning an access road from State Highway 6, linking to the subdivision, and KCA wants it built from the get-go, so trucks never have to use the main road.