Hobsons Bay Council is considering an application to rezone the site bounded by Nelson Place and Ann and Kanowna streets from industrial and special use to residential.

If successful, it could pave the way for a high-rise development comprising four residential towers between seven and 13 storeys, and 84 three-storey townhouses.

Mr Singer said this would sink the business in which he has invested hundreds of thousands of dollars.

"When I came here over 20 years ago this was a fully industrial site," he said.

"It was known as the arse end of Williamstown.

"In all the years I have been here, I have realised that we can't make a living out of a day-to-day pub, restaurant or whatever. So many, many years ago we decided we would turn the place into a special events establishment, namely the recreation of the maiden voyage of the Titanic.

"It has cost us megabucks to create this.

"The nature of the business made it very suitable for an industrial area.

"There were no residents here to get upset if we let off rockets, distress flares and bangers, or if people left at early hours of the morning.

"So if the area in question is to become residential it will mean an ongoing barrage of complaints from the residents.

"If it becomes a residential development, the Titanic is doomed again. And I don't think I can afford that, frankly."

The Titanic seats 300 people over two "decks".

Mr Singer said he wanted to give people an authentic experience and was, therefore, "not willing to tone down the ambience".

Residents' lobby group Save Williamstown has previously expressed fear that a residential development could threaten the viability of BAE Systems' naval shipyard, which employs 400 people.