Panmure residents Ben and Janelle McLeod, who own an earthworks business, bought about 80 hectares on the Ellerslie-Panmure Road about 18 months ago where they want to use some of the land for a basalt bluestone quarry.

Ms McLeod said the project would create up to four jobs and possibly use about a quarter of the property, which she currently used for beef farming.

But she said the plan was in the early stages and not lodged with Moyne Shire Council because it was still with the state government's Earth Resource Regulation (ERR).

"We are currently following the guidelines of Earth Resource Regulation and hope to have an endorsed plan by ERR for council in the coming months," Ms McLeod said.

Purnim resident Geoff Rollinson, a landcare coordinator and former Moyne councillor, has raised concerns about the site's blasting activity on nearby residences and the environment.

"In such close proximity to houses nearby it is just not in the right place," Mr Rollinson said.

He is chairing a Save the Hopkins River - Stop the Quarry group, fearful the planned site could impact the Hopkins River to the property's west, and wildlife in the Framlingham Forest.

The group has also raised the possibility works could disturb nearby Indigenous cultural heritage sites.

But Ms McLeod said the plan would follow regulations on separation distances from waterways and residences and she was prepared to work through community issues.

"The affects of the quarry will be within all legal requirements, and we will try and accommodate any real issues," she said.

"The extractive industry is heavily regulated and it will take a long time. We don't know what the size is going to be until we have an endorsed plan back from ERR."

A spokeswoman for the Glenelg Hopkins Catchment Management Authority said the authority had supported a work plan from the ERR with no additional conditions.

"The Glenelg Hopkins CMA has received a number of calls from concerned residents in relation to this development," she said.

"Many of the concerns raised are in relation to issues outside of Glenelg Hopkins CMA's authority."

Moyne Shire's economic development and planning director Brett Davis said the council had attended a pre-application meeting onsite last year.

"Council understands that a work authority (quarry licence) has been applied for through Earth Resources, however it cannot be approved until a planning permit is issued by council," Mr Davis said.

"Council is yet to receive a planning permit application. If a planning permit application is received, as part of the normal process it will be placed on notification, with opportunity for third-party appeals."

Have you signed up to The Standard's daily newsletter and breaking news emails? You can register below and make sure you are up to date with everything that's happening in the south-west.