Years-long tensions between those opposed to the $9 million Princetown Eco Stay project and the developer came to a head this week as works started after the project was approved with conditions in 2017.

Police escorted Gavin Ronan, director of Montarosa Pty Ltd, off the premises on Monday after he accessed the site from the neighbouring Princetown Recreation Reserve.

The access was an alleged breach of one of the strict conditions of the planning permit.

Corangamite Shire Council mayor Ruth Gstrein said the council was assessing its legal options.

"Staff are aware works have started down at the Princetown eco lodge," Cr Gstrein said.

"They have also been made aware of numerous reports that the developer accessed his site via the recreation reserve.

"There's a specific condition in the planning permit prohibiting that.

"Council will do further investigations and seek legal advice going forward and see how to take action."

There are 70 conditions on the planning permit, which was agreed upon by all parties.

The permit expires on Saturday.

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Mr Ronan said there was a fence cut, which was repaired yesterday afternoon.

"Montarosa holds a validly issued planning permit which will facilitate an investment of $25 million into Victoria's regional economy at a time when jobs are needed more than ever," Mr Ronan said.

"Access to its privately-owned property has always been through a gate to the side of Old Coach Road. It was only after Montarosa gave notice that works were about to commence that the gate was padlocked and a ute was parked in front of it.

"This morning (Monday), the only public road to the site was blocked by a protest, denying the landowner lawful access to their property.

"To be clear, the works are lawful, permitted and taking place on private property.

"It is regrettable that access to privately-owned land for works is being obstructed.

"It is also regrettable that the actions of people, many of whom consented to a planning permit being approved at VCAT in 2017, are now preventing a landowner from accessing their private property to do lawful work.

"If access continues to be blocked, Montarosa will pursue every available avenue to recover costs."

Warrnambool police Acting Inspector Brett Jackson said a group of up to 20 people were protesting the works.

"A peaceful protest kicked off yesterday (Monday) and there were no issues," he said.

"The group was back on Tuesday and police are in liaison with the group, as well as the developer and local council. It's really early stages at this point."

The acting inspector said the group would not be asked to move on "at this stage".

Among those was Princetown Recreation Reserve committee president Darin Blain, who claims the developer drove through a fence at the reserve.

"Under the VCAT condition they cannot access the development site through the recreation reserve," he said.

"There's a road easement he can access the site and he's had four years to put in a driveway.

"They're only doing works now because their permit is about to expire."

Mr Blain said the group was disappointed by what unfolded.

"We may have to take it back to VCAT."

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