The Wealden district will have to find room for 11,000 more houses before 2026 - and most of them are likely to be built in this area.
The South East Plan, unveiled two years ago, suggested 8,000 new homes would need to be built in Wealden over the next 20 years.
But the government said on Thursday 3,000 more homes would need to be built in the area to satisfy the demand for housing - bringing the total to 11,000, or 550 new homes every year.
The southern half of the district, including Hailsham, Hellingly and Herstmonceux, would be expected to take 7,000 of these new homes.
David White, chairman of Hellingly Parish Council, called the new target 'unrealistic' and said it would result in 'cramped, soulless urban sprawls'.
He told the Gazette, "I'm tired of listening to mindless bureaucrats driven only by targets who neither live in the areas most prejudiced by their decisions nor have any understanding of the consequences of their decisions.
"For years, central and local government, the Primary Care Trusts and other statutory bodies have consistently under-invested in the local infrastructure with the result that the road network is inadequate and falling into disrepair, education and healthcare facilities are overworked, our local shopping centres are in decline, local well-paid jobs are reducing and opportunities for leisure and recreation are limited."
Wealden District Council slammed the planned housing numbers as 'unreasonable'.
Cllr Roy Galley, cabinet member for housing delivery, said, "Two years ago we were expected to allow for 8,000 new homes to be built in Wealden over the next 20 years. This has now been increased to 11,000 new homes.
"With two thirds of the district covered by conservation sites and Areas of Outstanding Natural Beauty, this decision can only put unreasonable development pressure on the rest of Wealden.
"We acknowledge and accept the urgent need for affordable housing but these government proposals are not based on any careful research.
"What is more, they are proposing this imposition without any investment in our schools, hospitals, roads and other services. They are living in cloud cuckoo land."
Wealden and Brighton and Hove are the only local authorities in East Sussex to have their proposed housing figures increased.
The government said affordable housing would make up 35 per cent of the total housing provision and added there were already more than 200,000 households on council waiting lists and more than 7,500 homeless households living in temporary accommodation in south east.
Communities minister Parmjit Dhanda said, "The south east needs a long-term development vision that addresses housing shortages, tackles the threat of climate change and strengthens the region's economy.
"Despite the short term challenges of the credit crunch, our population is still ageing and with more people choosing to live alone the number of new households is growing faster than new homes being built.
"If more homes are not built now for the long term, the housing ladder will get even further out of reach leaving the next generation with nowhere to live.
"It is important all those who are interested in the future development of the area take this opportunity to comment on the proposed plan."
Full details of the latest South East Plan proposals can be found on the Government Office for the South East's website, www.gose.gov.uk.
The consultation documents can be downloaded from http://gose.limehouse.co.uk/portal/rss/pcc/consult.
Responses to the proposed changes are required by October 24.