The Mercury revealed last week that the fast-food giant had lodged proceedings against Wollongong City Council in the Land and Environment Court of the development, which also includes a petrol station and childcare centre.

On Monday, two dozen residents joined together near the development site to highlight their views about the plans, which were first unveiled in late 2019.

Read more: McDonald's takes Wollongong council to court over 24-hour West Dapto plan

Holding signs saying "Schools, not junk food" and "I'm not lovin' it" the residents of the growing development area highlighted that they did not want the fast-food outlet to set up shop in view of their brand new housing estate.

When buying into the area, residents were told by developers that the site of the proposed McDonald's would be a neighbourhood shop, with perhaps a green grocer, hairdresser or liquor store in among cafes and other services.

However, the 24-hour outlet is allowed, with council consent and under the right conditions, under the zoning of the land.

The controversial proposal has not been rejected or approved by the council, but is listed as being a "deemed refusal" on the council website as it was not determined within a certain timeframe.

Councillor Ann Martin - who represents the southern suburbs - said developers were allowed to lodge a case in the LEC to get a determination if one had not been made by a council within 40 days.

Cr Martin said she had been advised that the council was still assessing the DA and said it had not made any decision on whether it should be refused or approved.

The project will likely come before the Wollongong Local Planning Panel, where residents who objected to the proposal can have their say, next month.

If the planning panel does decide to knock back the plans, the case will continue in court.