The discretionary planning permit was approved seven votes to five following two hours of debate, with Aldermen Ted Sands, Emma Williams, Andrea Dawkins, Danny Gibson and Mayor Albert van Zetten voting against the permit.

Numerous members of the community spoke for and against the motion before the debate between aldermen.

Most were concerned about the potential environmental impacts of the partially-built shed which will accommodate 7200 free-range chickens for Tasmanian producer Olsons Eggs.

Farmer Chris Olson assured attendees all concerns had been taken into account.

He said the development would create employment in the area and boost the local economy.

Alderman Janie Finlay spoke at length about the chicken shed and, like most aldermen, questioned two consultants attending the meeting about environmental considerations.

She said her concerns lay with the potential impact on the Pipers River water supply.

A report from independent consultants found the potential for odour, soil and water contamination was within the state's guidelines and called for regular testing of the water and soil.

But tourism operator Rhonwen Pammenter said residents were not satisfied with the outcome of the meeting and would be investigating their options.

She was among residents who attended the meeting with concerns about the development's impact on her livelihood.

"If we thought for one minute any of those things wouldn't happen (odour and soil and water contamination) we never would have opposed it," Mrs Pammenter said.

Alderman Jim Cox commended the residents on their handling of the situation and urged them to "look out for each other".

"It's a situation that's been awful ... but there's been a lot of thought and a lot of consideration," Alderman Cox said.