A development application for the showroom, as well as a DVD cleaning business, was originally lodged 12 months ago by Sydney-based businessman Henk Bender, and is now slated for an industrial site on Douglas Mawson Road.

Despite fitting Dubbo's Local Environment Plan (LEP), the council has received 43 letters of objection to the adult products business.

Mr Bender said he had no idea his business idea was causing such a stir.

"Goodness gracious," he said.

"I don't understand why there'd be any objection to this.

"It's not as though it's a brothel."

The Daily Liberal understands the church has written a formal objection to the business that is planned for a site at the back of the David Payne Constructions industrial estate, and within view of the church.

Colleen Luckensmeyer is a member of the church congregation who helps to run a church-based children's playgroup during the week.

"I think it's an awful idea," she said.

"I don't want my daughter exposed to those sorts of people.

"I'm not a big fan of those shops anyway, and to put it so close is a bad idea."

The business was first planned for a site on Young Street, and Mr Bender said he moved the proposed business to Douglas Mawson Road to suit the area's zoning.

"It's way out of the road, it's not as though it's in a visible area," he said.

Mr Bender owns another adult shop at Byron Bay and he hadn't expected any problems with his proposal.

"We've never had to worry about this before," he said.

"It's not going to impact on anything, it's only going to be a small bloody shop."

The council's environmental services director Melissa Watkins said the outlet wasn't illegal under Dubbo's LEP, but there were other restrictions in place.

"There are a number of development standards they must comply with," she said.

"It cannot be located within 200 metres of a residential or business zone ... or a church or a public open space."

While Mr Bender said the site was more than 200m away, Ms Watkins said she was still collecting public submissions on the development application and had not yet made a decision on the outlet.

"These are quite set development standards," she said.

"This isn't a negotiable thing."

Ms Watkins said she would offer Mr Bender an opportunity to withdraw his application.

"Forty-three objections is substantial," she said.

Another submission was sent in by Ron Taylor who said he objected to the development because the council's LEP was "mandatory and absolute".

"My attitude is it shouldn't be there because it's a restricted premises, whether I'm religious or not," he said. "The council made the rule in the first place."

Ms Luckensmeyer said the playgroup involved 30 children attending the church on "most days of the week".

"It's a great opportunity for parents to take their children to a safe place and not worry about any child protection laws," she said.

"If laws to protect children are made, then they should keep that away from kids."

Mr Bender pointed out the adult goods shop already operating on Macquarie Street without any objections, Sharica, but Ms Watkins said Sharica had begun operating before the current LEP came into existence.