The decision to remove plans for 2,500 homes near the villages of Castor and Ailsworth has been questioned by Peterborough city councillors.
The council announced last month that the settlement was no longer required because the number of homes needed in the city had been revised down due to new government guidelines.
But speaking at a council scrutiny committee meeting, Eye representative Cllr Richard Brown questioned why the village was to take on another 250 homes while the development by Castor and Ailsworth had been scrapped after a large campaign against it.
He said: “Castor had a moan and got away with it, why can’t Eye?” Cllr Dave King said: “It seems to be public pressure has swayed heavily - that’s the perception.”
Cllr John Peach said keeping the development in the council’s Local Plan - which earmarks sites for development over the next 20 years - would have given the authority some “wriggle room” in meeting its housing demand.
Richard Kay, the council’s head of sustainable growth and delivery, said the settlement was no longer needed because of the reduction in housing need.
Simon Machen, the council’s corporate director for growth and regeneration, said: “The commitment in here is to make sure Eye’s growth is properly dealt with and has the necessary infrastructure improvement. There should be a benefit to the local area as a consequence.”