More than 100 people gathered by the Broulee RFS shed on Saturday afternoon to protest covert land clearing on what is believed to be community land.
It was the third community-led protest about this issue, and followed weeks of public forum presentations and council discussion.
The land in question, known as Lot 89, is on the corner of Clarke Street and Broulee Road and has been a point of contention between the community and council for a number of years.
The issue was brought to a head when development started on the block and tree removal appeared to encroach on a section of community land, classified as such in 2003.
Adding to the complexity was an error in due process at the time, which according to council planning officers caused the land to mistakenly remain classified as operational rather than community.
Broulee Mossy Point Community Association spokesperson Andrew Bain said the community would persevere with it's fight to maintain the section of community land.
"We want council to observe and stand by the decision from 2003 - back then, this land was assigned to the community because of strong community support," he said.
"Many letters were written and a petition was submitted to council [and] there is still strong, if not stronger, support for retaining this area as community land."
Councillor Anthony Mayne attended the community gathering and said questions needed to be answered about why the land was not classified formally after the 2003 council resolution.
"When will the 2003 council resolution be put into effect? The council ultimately wants to sell this land, as they have already tried to do this once," he said.
"We want this little piece of land formally given back to the community [and] it is difficult for the community to understand why this is not a simple matter of formally adopting the 2003 motion.
"Here is a chance for the council to show it is listening to its ratepayers."
Labor for Eurobodalla mayoral candidate David Grace community land was precious and needed to be preserved.
"This land was being tended by the Broulee community through Landcare [and] it provided an important habitat for many of the creatures that make our coastal village such an attractive place to live," he said.
"We may not be able to stop this destruction, but we need to be ready to stop any further unnecessary destruction."
At last week's council meeting, council Planning and Sustainability director Lindsay Usher said due process was not followed after the 2003 resolution and as a result the land was not reclassified from operational to community land.
"At the time, the resolution was not done in accordance with the Local Government Act, so legally the block is still operational land," Mr Usher said.
"But we will continue to investigate the matter and bring back a report with background and options available to council in order to implement this change for community land.
"Staff have acted in good faith and will continue to do so to ensure council passes the correct resolutions to make this happen."
Mr Usher said council would be presented with a report to correct the issue as soon as possible.
"The amount of work we have to do to get [the report] right and provide fulsome advice, means it will probably only be brought to council in a September meeting," he said.