A date has been set next month for the continuing battle over Oxford's Trap Grounds.
The city council wants to build 45 affordable homes on the land near Port Meadow but is being blocked by a group of environmentalists, who have won a High Court ruling designating the space a Town Green.
To date, about £65,000 of taxpayers' money has been set aside to contest the case.
But Labour city councillors insist it is worth fighting because there is such a shortage of affordable housing in the city.
Oxford Citizens Housing Association was given planning permission to build the homes on the north Oxford site.
But following a public inquiry, the High Court backed pressure group the Friends Of The Trap Grounds, in their bid for Town Green status.
On Monday January 17, lawyers for the two sides will contest the case for the third time at the Court of Appeal in London. If the city council loses again, it will consider taking the case to the House of Lords.
Catherine Robinson, for the Friends Of The Trap Grounds, said: "We have won twice and the odds are that we shall win again.
"The hearing in January could last six days and we have set aside £12,000 for the legal costs. So far this has cost us £25,000.
"This is a test case for the whole country, so we feel a duty to continue because the future of other sites depends on the outcome of this case."
John Tanner, council cabinet member for strategic planning, housing and economic development, said: "If the Court of Appeal says the protesters are right and this land is a Town Green, which it obviously isn't, then anyone with a bit of money who objects to a housing development will go to the courts.
"I think most people in Oxford know that there is a desperate need for more housing in this city and want to see sensible development."
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