The area is bordered by Pitt and James streets and Five Islands Road, and is entered from Pitt Street.

Last month, McCloys Pty Ltd applied to Lake Macquarie council to continue developing the subdivision without a second road, stating it was unnecessary.

The matter was deferred pending advice from the NSW Rural Fire Service (RFS) about emergency access.

A second road across the railway line would have left the council $5 million out of pocket because McCloys said it would not contribute to the cost.

In a council report presented last week, the RFS approved the development without a second access road, relying on "emergency access roads".

The subdivision's emergency access road diverts to the main entrance at Pitt Street.

Councillors voted in favour of McCloys' application by 7 to 4.

Holmesville resident Bernard Griffin disagreed with the decision.

"I know there is a $5 million or $6 million question mark hanging over the second road, because that's how much it would cost to build it and the council just doesn't have that kind of money," Mr Griffin said.

"But I stand by what I said: allowing only one access to a development is immoral."