Epsom Milk Bar owner David Dei and Epsom Post Office owner Amanda Field were two of the 15 objectors to a plan that would see a new KFC built at the intersection. They want to see the intersection improved to be able to cope with an expected increase in traffic.

Since the plan was approved, they have written letters and handed a petition to council calling for improvements to the intersection before more developments begin.

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"What we want to see is all the traffic issues through here, particularly on that intersection, fixed before something else is set up that will add to the problem," Ms Field said.

Mr Dei said crashes are common on that intersection.

"From my point of view, I'm not worried about what business is coming in, what concerns me is... the traffic it brings to the area," he said. "We have seen so many car and truck accidents happen on this intersection. This area has been growing for four or five years. The school (used to have) 80 to 100 kids, now it's over 300 - three times more than used to be."

In December, councillors Andrea Metcalfe and Matthew Evans expressed their concerns about increased traffic on the intersection, agreed it was overdue for re-development and described it as a bottleneck.

Last week, acting Department of Transport director (Loddon Mallee) Barry Green said the department would work with the City of Greater Bendigo to address any concerns raised by the community.

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Ms Field said the intersection has been dangerous for a number of years. She fears extra traffic will cause problems for the postal bikes that use Tierney Lane (adjacent to Howard Street) as an entry-exit point for the post office.

"I'm not a traffic manager but something has to happen with this intersection," Ms Field said. "It's been a problem for a long time. We have to go with what Bendigo council decide but (they should) get all this fixed first.

"There's been no forward planning. They have Epsom Shopping Village, they have set up Salvos and Aldi down there and now they're putting up another thing. But they haven't solved the problems around it."