The new restrictions would cover the length of Upper Brook Street in Oswestry from the Trefonen Road/Broomhall Lane junction to the mini roundabout.
Shropshire Council is proposing to create designated parking bays and prohibit vehicles from parking or waiting at any time on the remainder of the road.
However concerns have been voiced that the move would simply push the problem onto neighbouring streets.
The council agreed in December 2020 to look into the issue of parking along the road, which runs alongside Oswestry School, and has now opened a public consultation on the proposals.
Discussing the plans at a meeting of Oswestry Town Council on Monday evening, Councillor Les Maguire said: “It’s a good idea but I have concerns that all we are doing is moving the problem elsewhere in Oswestry. We see it already in certain areas on the outskirts.
“I have also seen and read reports that companies like Sainsbury’s and Iceland are having problems with people parking there, and people are using side streets to save money on parking as well.
“I think all the areas on the outskirts of Oswestry should have parking permits.”
Councillor Sam Chadwick said: “There are a lot of houses along that area and there isn’t anywhere else locally they can go and park elsewhere, so they are going to end up in small back streets.”
Summing up, finance and general purposes committee chairman Councillor Duncan Kerr, said: “We need to express concern that people will have to find other places to park their cars and that will have a knock-on effect on other communities.”
This proposal was supported by members.
On the subject of permits, Councillor Mike Isherwood, who also represents Oswestry West on Shropshire Council, said he had been assured by officers that residents’ permits for certain areas of Oswestry were being looked into.
The Upper Brook Street parking restrictions consultation is open until March 15.