Cupar Community Council says it will continue to fight plans for 500 new homes to the outskirts of the town.
The Cupar North plans saw hundreds of objections raised, but a Scottish Government Reporter ruled that the development should go ahead.
Gina Logan, community council chairman, said members planned to bring in the Scottish Environment Protection Agency.
She said: “We’re not prepared to just sit back. We’re going to involve Sepa.
“We’re going to keep asking questions - what’s their position on drainage and sewage?
She continued: “We don’t want to become another dormitory town where people live on the outskirts and travel to Perth or Dundee.
“These people never come into town.
“It’s vital that we bring life back to the town centre. There are so many derelict sites ripe for expansion in the centre of Cupar.
“If they are going to build new homes in Cupar then we have to make sure they get it right.”
Gina said the community council is planning to meet in January and decide what questions to put forward.