Williamstown church has been approved by Hobsons Bay Council.

St Andrew's Presbyterian Church, between Cecil and Hamner streets, has been given the go-ahead for a 79-place centre operated by Kids by the Bay.

The centre would be built on land formerly occupied by the church manse, which was demolished after falling into disrepair.

Fourteen objections were received by the council.

Objectors' concerns related to neighbourhood character, heritage controls, the appropriateness of a commercial development in a residential area, traffic, car parking, noise and too many childcare centres in close proximity.

Reverend Bruce Riding said there was enough demand to justify three more childcare centres in the area.

"The childcare centre next door has a waiting list of over 300, so you could put three 100-place childcare centres in Williamstown and they wouldn't compete against each other - there's that much demand for them."

He said Kids by the Bay had already received inquiries from prospective parents.

While the church has seven playgroups, these are designed for parents to attend with their children.

Mr Riding conceded there would be more traffic.

While several parishes of various denominations were subdividing their land, people needn't worry about churches disappearing, he said.

"They won't sell them off, but leasing it out or developing it - yes, quite a few are doing that."

He said the church had been approached by ABC Learning four years ago.

A similar application by the church was approved by the council last June but was later overturned on appeal to the Victorian Civil and Administrative Tribunal.

Residents have until July 8 to appeal the council's latest decision.