Opposition is growing over plans to build homes and commercial units on the Wootton Business Park, near Abingdon.
Villagers fear 99 homes and new businesses will swamp services and roads, despite a package of improvements proposed as part of the plan.
Further talks will now take place with the owners, Oxford-based car group Hartwell.
The scheme would involve seven business units and parking for 301 cars on the site, which is used largely for car storage and has just four business units.
Hartwell is prepared to spend more than £400,000 on a package of improvements, including:
A three-year subsidised bus service to improve access to the site. The existing hourly service would be extended until midnight and include Sundays and Bank Holidays
A financial contribution to Abingdon library
Provison of a public open space
A roundabout off Cumnor Road
A pelican crossing in Besselsleigh Road near the Bystander pub, and two bus shelters
Two new cycleways.
Simon Kidd from Wootton Parish Council said such a large development would spoil Wootton and strain services, schools and roads.
"If it does go ahead we need improvements to services, including a new community centre," he added.
District councillor Chris Wise said the extra traffic would lead to bottlenecks at Besselsleigh Road and Cumnor Road junction.
He added: "A bus subsidy needs to be longer than three years."
The Vale of White Horse District Council development control committee had deferred a decision on the plans so that more discussions can be held with Hartwell.
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