Developer, Barratt Homes, displayed its plans to build the houses on land just north of Havant Road, Emsworth.
Local residents at a public consultation yesterday shared concerns over the development of the site, in particular the increase of traffic on surrounding roads.
Jo Dyer, of the Emsworth Residents’ Association, said: “Havant Road is a very busy road.
“The addition of 194 houses with however many cars will only add to congestion in the area.”
Jo voiced her association’s concerns over the potential for flooding from more properties being built on an area that is close to an area of high risk.
She said: “Residents on Selangor Avenue have already suffered from flooding. The new homes would potentially add to the flood risk.”
The meeting was held at The Plaza in Havant and attended by around 60 members of public in a packed consultation room.
Andrew Norton, of the Warblington and Denvilles Residents’ Association, felt the proposals would lead to the merging of the two towns.
He said: “The proposed site is part of the undeveloped gap which separates Emsworth and Havant. It is important to keeping the town’s identities separate.”
In response, Stuart Goodwill, head of planning for Barratt said: “There is only a finite amount of land in this country.
“We believe the proposed site can provide good quality housing.”
The plan is for 64 one-bedroom houses, 35 two-bedroom houses, 71 with three bedrooms, and 24 with four on the site in between Emsworth and Havant.