The City of Greater Bendigo is assessing the application for a mobile coffee van in Elmore's Railway Place. The application is not exhibited publicly, as it was made under local law.

Elmore Progress Association president Jeff Crust said lack of parking was his main concern, especially for trucks and cars towing caravans.

Read more: Bendigo council approved works without landowner consent

He said more cars pulling in and out of the railway carpark would cause crashes, especially at busy times.

Mr Crust noticed there was no parking available in Elmore on Friday morning, even without the coffee van operating.

He said passing traffic would stop when they saw a coffee van and take up all of the six Railway Place car parks.

"It's going to cause bottleneck problems and make it difficult for local people to get in and out of town onto the northern road so they can get to Bendigo and Echuca," Mr Crust said.

"You've got all the traffic coming from Melbourne in via the Northern Highway. Then you've got all the traffic coming from Bendigo via the Midland Highway."

Read more: Furore brewing over Elmore coffee van

Bendigo East MP Jacinta Allan said she understood why local businesses were concerned about what was happening in Elmore with the operation of a coffee van.

Ms Allan sad it was a matter for VicTrack when asked if she would be meeting with anyone in relation to the van.

The Bendigo Advertiser revealed on Thursday that the city gave allowed the applicant to install underground power and water on site, without the permission of the landowner VicTrack.

The city leases the site from VicTrack.

"This is a matter for VicTrack as the manager of our rail asset right across state," Ms Allan said.

"Anyone who wants to lease part of our rail asset, who wants to do works close to our rail asset, need to get the approval from VicTrack and it's appropriate that VicTrack follows this up."

VicRoads declined to comment.

The Bendigo Advertiser has been unable to contact the applicant.

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