There are fears the current site is leaking and adding to the facility will only exacerbate the problem, according to residents.

Paper, packaging and recycling company Visy has been using a site less than three kilometres from Gundagai since 2013 to dump waste.

The site – a former quarry on Burra Road – is licensed to accommodate 150,000 tonnes of non-putrescible solid waste.

The proposal reveals plans to increase the capacity of the site to take up to 750,000 tonnes over the next 15 years. The Environmental Impact Statement is being exhibited with submissions to close on February 19.

Staunch opponent of the proposal, Freda Nicholls, says the owners of the facility need to rehabilitate the site now to prevent catastrophe.

“This was put in the wrong place,” Ms Nicholls said.

“It will affect a lot more people than just (Gundagai).

“It has to be capped now to stop salt going into the water table.”

Salvestro planner director Garry Salvestro, the company who has drawn up the plans for site owners MH Earthmoving, has welcomed the debate over the proposal.

“If residents have legitimate concerns they can have their say,” Mr Salvestro said.

“People have a right to scrutinise the exhibition material.”

Another resident, Alice Taprell, said contamination was her primary concern.

”We have bore water on our property, and we’re worried about it becoming contaminated,” Ms Taprell said.

“Landholders close by say the stench is horrible, especially in the evening and early morning.”

“It shouldn’t have been allowed in the first place.”

The residents on Punch Street – an avenue for the trucks that travel to the dump – have written “No more Visy” on their bins in protest, and leaflets and a petition are being circulated.

Gundagai mayor Abb McAlister said nothing formal had come in to council at this stage and couldn’t comment further.