A planning inquiry opened in Camborne to consider a proposal to build 40 homes on land at West Tolgus, near Redruth.
First Step Homes (SW) Ltd's planning application was rejected by Cornwall Council in November 2011.
The council said the site was "greenfield" and "outside the defined development boundary limits for the area".
It was "not considered to be well integrated" and would result in "an incongruous urban extension".
The company responded by submitting a fresh application in February 2012 for 30 homes and a few weeks later lodged an appeal with the Secretary of State for the earlier application.
The application for 30 homes was subsequently turned down by Cornwall Council on similar grounds to the first application.
The planning "hearing" was led by Gareth Isaac, a Government planning inspector.
First Step Homes was represented by planning consultant Stephen Bott, transport consultant Jon Pearson and the company's managing director Derek Coyle.
Cornwall Council was represented by Peter Blackshaw, principal development officer at Cornwall Council.
About 30 members of West Tolgus Residents' Association, which is against the proposal, attended, with their views represented by secretary Eleanor Glanville.
Mr Isaac said the key issues, in his view, were the accessibility of the site, and the effect of any development on the character and appearance of the area.
He said: "My aim is to ensure that all concerned have their chance to make the points they wish to make.
"I've viewed the site and the surrounding area from public viewing points.
"I shall be making a more detailed inspection before I start considering all the evidence."
Mr Isaac is expected to announce his decision in the new year.