We had something sort of similar happen a few doors down from a summer home property that's been in our family for decades. It's in another state, so I wasn't privy to all that happened, but I do know that my dad went door to door with a letter he'd written to let everyone know what was going on and encourage them to get involved. Surprisingly, many did not know but once they did they took action. Letters were written and many, many people showed up at the town meeting where this matter was being discussed and decided on. We spoke about how when we bought the property in a residential area, it was with the understanding that it would remain that way. We highlighted the environmental dangers (which you could certainly do), the denigration of the lake, the reputation of the town, the unfairness to property owners as the value of their property would surely plummet. The sheer number of protesters brought the whole thing to a halt and the property has now, happily, been purchased by a family who is building a home there. We had a similar experience going up against a mining company in CO -- they thought it was just a bunch of mountain folk that could be railroaded, but the organization of the whole town shut them down. I don't know all the legal aspects, but I do believe a room full of citizens armed with well thought-out letters and the will to not let this happen to their neighborhood goes a long way. Good luck to you!