People living in part of Leicester say moving the city's bus depot will increase pollution and congestion.
But First Bus denies the planned move from Abbey Park Road to Abbey Lane would cause any extra traffic.
The plan would include demolishing the present depot at Abbey Park Road to make way for more than 400 flats.
The city council and the bus company say they have looked at other sites - but they were either too expensive, in the wrong place or too near houses.
More than 100 buses would use the new depot, and most of them will leave in the early morning and return as late as 1am.
First Bus spokesman Adrian Culpin said that at the moment the planned move was just a proposal and locals would get to have their say on the issue.