Greenhills Beach residents are calling for talks between the various stakeholders over the proposed $20.4 million indoor aquatic / water polo centre in the grounds of Cronulla High School.
They have released images to show the impact the project would have on adjoining homes.
The residents are pushing for the centre to be moved to nearby Marang Parklands, which is progressively being developed.
A campaign leader said residents were "calling for a coordinated discussion between the council, state planning and education departments and the proponent on moving the project from grounds of Cronulla High School.
"We know there is suitable land at Marang Parklands that could be made available for the facility," he said.
"The draft concept plan of having the facility in school grounds was hatched well before the Greenhills and Shearwater estates were developed and did not consider the impact of residential dwellings adjoining the proposed facilities," he said.
"The residents are not anti-water polo, but feel a facility of this nature should be located in a more logical location."
Sutherland Shire Council expressed "significant concerns" about the plans before the group behind the venture withdrew the development application (DA).
Sharks International Water Polo Academy said the the "temporary" withdrawal would allow more time to complete additional technical and engineering reports."