There are fears a delay in works at the Virginia wastewater treatment plant could slow the growth of the town.
Local Councillor TP O’Reilly was speaking after An Bord Pleanála refused permission for eight houses because of a lack of capacity at the existing plant.
Irish Water says plans for upgrades to the plant are at the detailed design stage but there is still some capacity to allow for some new connections in the meantime.
Works were due to be completed by 2021, but the Fine Gael representative believes it could be pushed out a year due to Covid-19.
Speaking to Shannonside Northern Sound, TP O’Reilly said they need to protect the environment and economy for the years ahead.