The school project aims to cater for current and projected growth in the area and will deliver 20 new permanent class rooms, upgraded administration facilities, library, canteen, student toilets and outdoor learning areas.

Demountables will be removed upon completion.

The upgrade will accommodate up to 875 students in permanent classrooms. The school currently has an enrollment of 738 students.

Glen Bradley, whose property backs onto the school's playground, believes residents and students are getting a raw deal.

"When it is school drop off and pick up times, parents in their cars are parking on footpaths, across driveways and are stopping in the middle of the road," he said.

"Students can't walk on footpaths. It is dangerous."

Read more: Nearly 1000 homes planned for next stage of West Dapto development

Another resident Allan Timbs said the school site was not suitable for the extensive upgrade.

"A government report states Dapto Public School was originally intended to have 400 pupils with the addition of demountable classrooms introduced over 10 years to accommodate 630 pupils," he said. "Another government report from 2005 states there was an unanticipated closure of the old primary school and those pupils were relocated to the current school.

"The unanticipated closure of the old school and an inadequate forecast of population growth has led to an over population of school students."

Mr Timbs wants the Department of Education to scrap the upgrade and build a new school at West Dapto.

A Department of Education spokesman said it anticipated that by 2031, about 800 students will be enrolled at the school. "A traffic study recommended the addition of about 30 car parking spaces which have been included in the plan," he said.

Mr Timbs and Mr Bradley are concerned the new jail-like building will not suit the character of the surrounding area and once it is built they will lose their rural vista views and it will decrease the value of their property.

The department spokesman said the design for two and three storey buildings was developed to maximise the play area.

Mr Bradley said a small sign alerted him to the project and he with other residents attended a community consultation session in May but he was dissatisfied with the limited information provided by department representatives.

The spokesman said residents could make submissions when the proposal goes on public exhibition with council.