THE debate over whether to site a free overnight rest area in the centre of a sleepy Queensland village continues to rage.

Parents want caravanners and motorhomers banned from the recreation ground near the primary school at picturesque Bauple north of Gympie after claiming children were at risk.

One angry parent protested after allegedly seeing a traveller in his undies and others talking to young children.

Grey nomads and other tourists have been overnighting on the village centre recreation ground for years, but Fraser Coast Regional Council had recommended a new rest area be provided at Rossendale Park on the edge of the village.

Meanwhile, there was a push to retain an overnight camping area in the heart of the village.

But local resident Rachel Ireland maintains the majority of villagers did not support the idea, telling Caravanning News: "The driving force behind this campaign is the owner of the only shop in Bauple, who has sensationalised quantities of misinformation to sway locals into petitioning for his benefit."

Many petitioners had since signed a second petition in favour of the Rossendale site, she said.

"Had he not been so determined to have the location so close to his shop, the Rossendale site would already be approved," she added.

"The Bauple community has always welcomed travellers, and will continue to, but will not be bullied simply because one person is adept at distributing propaganda to further his agenda.

Roadside reserve in the village centre, one of several sites suggested for Bauple's overnight rest area

"There are concerns beyond those that are 'newsworthy' to be taken into account by council in consultation with the community, and we trust that an acceptable outcome that is beneficial to all will be achieved."

Another local, Sharyn Manwaring, said a recent council "consultation meeting" in the village – once famous for its fairy grotto – was a chance for the council to present its proposal for overnight RV stays at Rossendale Park.

"During this consultation it was suggested that day parking be provided in the centre for four to five hours for people to stop and look around on their way through," she explained.

Ms Manwaring said last month's Caravanning News story on the issue been "fuelling much angst in our town".

"It also appears to belittle some very legitimate concerns from many of our community members, making them out to be fearmongers, which I can assure you is not the case."

Macadamia farmer Marc Bromet, who runs the village's only shop, brushed off claims that he had a personal interest in getting the rest area sited in the village centre.

"My agenda is to make this a very happy RV site and make the village sustainable," he told Caravanning News.

"I think the bulk of the community and community organisations want RVs ... and they want the site in the township, not on the highway. They want an unhook-and-look site."

He said there was no doubt people who lived in the area and in the village itself were definitely in favour of recreational vehicles.

"Caravanners and motorhomers have been staying here for as far back as people can remember. Chapters have been coming here over many years and there has never been any problem."

Mr Bromet thought claims that travellers had been seen in just their undies was just a "figment of someone's imagination".

"There were no reported incidents to the police and if there had been I am sure the police would have been notified," he said.

He said the consultation meeting had heard several suggestions for where the overnight camping area could be located.

A member of the village centre Men's Shed which adjoins the recreation ground dismissed any suggestion that young schoolchildren were at risk from overnight travellers.

"They have never been any problem," he said. "When we first arrived on the scene some locals even accused us of being a bunch of paedophiles."

Fraser Coast Regional Council chief executive officer Lisa Desmond said the council valued the "positive economic impact" visiting caravanners had to the region and wanted to encourage them to spend more time exploring the area.

After consulting the Bauple community the council had decided to support, in principle, overnight stays next to a short-term parking area on the village-centre green.

"Council is presently preparing concept plans on how this will be facilitated and will be meeting with key community groups in May to finalise the concept before being formally approved by council," she told Caravanning News.

"We will be placing a priority on finalising this project to facilitate overnight RV camping in Bauple, and are hopeful that this solution will gain the majority of support from the community."

Ms Desmond said the council undertook an audit of sites across the region to facilitate RV overnight camping, particularly in small rural communities.

"These often depend on external stimulus to survive because of their existing small population bases," she added.