A demonstration will be held today outside the Daylesford Holiday Park in order to highlight the community support for the affected permanent residents.
Ms Redwood said the council wanted to protect the rights of the vulnerable members of the community.
“This is a matter of human rights, of residential rights and of the rights of quiet, responsible home owners to stay in their home,” she said.
“This has been a painfully slow movement with lots of community action, Council and Government coming together to effect change, but little or no traction in negotiations.”
Mr Fraser, who is representing the residents, said he is hopeful for a peaceful resolution.
“I hope we will reach a sensible outcome by consent, meaning we do not have to go to court. That window of opportunity is rapidly closing, however,” he said.
“We want the residents to be allowed to stay in the park in the capacity in which they are currently living.”
Mr Fraser said the matter would continue to develop in coming weeks.