The NoLeaf Incorporated Society was formed to object to the Olive Leaf Centre Trust's proposals for a multi-purpose building beside the St Patrick's Catholic Church.
A public meeting about the proposals was held for residents on Sunday, followed by an open day yesterday at the Arrowtown Athenaeum Hall, where large models of the planned parish and community centre were on display.
Simon Oates, acting chairman of the society, said the centre is "a highly inappropriate proposed development, and contravenes the long-established and long agreed-upon rules for the historic part of Arrowtown''.
"We believe Arrowtown is a special place, and must be protected.''
Mr Oates said there is "significant opposition in the Arrowtown community'' to the proposals.
Some residents who attended the information sessions over the weekend questioned whether enough community consultation had taken place before the plans were drawn up by Otago architectural designer Fred van Brandenburg.
Other critics also raised the issue of funding for the project, which the trust suggested could be funded through donations and grants.
Despite residents' criticism of the plans, many others showed support for the centre as a valuable community hub and said they thought it was well designed.
Olive Leaf Centre Trust chairman Colin Bellett said the building would be "very much a community facility''.
"We hope the whole community of Arrowtown and far beyond and all our many visitors that come regularly to this place will see that it is a really lovely venue.
"I hope that the ones who don't agree with it at the moment will see that their objections are unfounded.''
Mr Bellett said he hoped residents would see in time that the trust had tried to be "very sensitive to the beautiful architecture of the old church''.
The stone-clad building, which would have an olive-leaf shaped roof, is planned to be a "low-level'' structure and would be surrounded by a series of stone walls.
Designed to be a "taonga of our time'', the development would feature Maori motifs in mosaics on stone walls and a glass koru motif.
Land use consent is being sought to carry out the development after a draft resource consent application for the building was lodged last year, before it was processed in error and put on hold at the trust's request.
Public submissions on the plans will be accepted by Queenstown Lakes District Council until September 13.