Canmore town council has approved a plan to build affordable housing in a green space, which is upsetting some neighbours who say they will continue to fight the project.

Earlier this week, council voted unanimously to rezone a piece of land in a municipal reserve known as Larch Park and build about 40 housing units.

Canmore Mayor John Borrowman says the lack of housing is hurting efforts to attract people to the town. (CBC)

Resident Kim Johnson said neighbours haven't given up on saving what they see as park space in the Larch area. Johnson says he knows there is a critical need for affordable housing in the mountain town, but believes there are better locations.

"My pride in this town has fallen. This council, this pro-expansionist council, has just created what I think is the worst thing they could do. Let's put housing in our parks — that's ridiculous," he said.

The town, 88 kilometres west of Calgary, attracts people because of its beauty and location, but it has a zero vacancy rate for rental accommodation, which hurts local businesses when it comes to hiring and retaining staff.

"We have very limited lands that the town owns and in order to build affordable housing, the land has to come with zero cost," said Canmore Mayor John Borrowman.

He adds that this spot is not officially park space and the existing ice rink will remain.

Canmore is trying to build homes for nurses, teachers and firefighters and needs places they can afford, says Borrowman.

There will be another public hearing next year when the land goes through the rezoning process.