Planning and development director Prue Mansfield said there were records of a celebration recognising the avenue but no official recognition of it as an Anzac Avenue.

"There were a number of tree plantings over a number of years," Ms Mansfield said.

The avenue of five trees, situated on the old State School No. 3893 site, will be flattened to make way for industrial sheds, according to the planning application.

"What is unclear is what was added to the avenue during special (school tree-planting) days," Ms Mansfield said.

"What we don't know is how many trees there were in the avenue originally because there were so many trees planted over the years."

Ms Mansfield said Bendigo council staff recognised "a lot of confusion" when they "identified" the issue.

"With only four trees left our conclusion is the heritage significance of the avenue is gone," she said.

"The independent panel that will hear the issue will decide whether our conclusion is right or not."

Gemma Starr lives across from the Strickland Road property.

She said she hoped to campaign against the planning permit and for a revision of the heritage overlay.

Ms Starr met with Planning Panels Victoria Panel last Wednesday but said she would not see results for six weeks.

She said the VCAT hearing, originally scheduled for yesterday, will be postponed to July 17.

The plan will turn the block into seven blocks with four driveways onto Murphy Street providing access to the back blocks.

Six of the blocks will become industrial and one will remain as it is.

Block seven, facing Strickland Road, will block the original entrance to the State School No. 3893 and flatten the trees lining the path to the entrance.