The 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 the former Port Phillip Woollen Mill site is rezoned it will pave the way for a high-rise development comprising four residential towers between seven and 13 storeys, and 84 three-storey townhouses.

Save Williamstown spokeswoman Suzanne Orange said that if the rezoning amendment was approved, residents and stakeholders would lose their third-party rights to appeal against any aspect of the development.

"The developer will control the site," she said. "We are keen to let the community know that if council proceeds with amendment, council will write to the [Planning] Minister for authorisation to proceed."

The Save Williamstown group is finalising a brochure for distribution to residents which explains what the process will be for residents to formally lodge objections against the proposal.

"I want all Hobsons Bay residents to think about the impact on our community if developers are given permission to proceed with towers 46.5metres tall, adding 10per cent of Williamstown's population to Point Gellibrand," Ms Orange said

Evolve Development managing director Ashley Williams said he hoped the council would move the application forward.

"If the council says yes, it's basically just a stepping stone towards the planning panel process. It's misleading to suggest that approval on [Tuesday] will lead to removal of third-party appeal rights."