Mt Evelyn Environment Protection and Progress Association president Franc Smith said the school was wrong to allow the installation of a "new" 28-metre Telstra tower for internet and computer networking. "It would appear they've seen the dollar signs," Mr Smith said.

He labelled Telstra's community consultation as "really mischievous".

"It's a sensitive location close to a special development school, pre-school and the unique powerful owl sanctuary."

In a letter to Kilsyth MP David Hodgett, the Department of Education stated the new tower replaced an existing structure that could no longer ensure communication links with the college's other campus.

At last Tuesday's Yarra Ranges Council meeting, Billanook Ward councillor Tim Heenan said Telstra was using a loophole to avoid having to get a permit for the new tower.

"It's absolutely new - they're making a banana out of a cucumber," he said.

He called on Telstra to complete extensive consultation on the project - including a public meeting where interested parties could voice their concerns.

"Hardly anyone in the community knows about it. Some residents in Fernhill Road received some notification, but not all.

"The most important stakeholders don't know - Fernhill Kindergarten and Mt Evelyn Special Development School."

Mr Smith said MEEPPA was concerned the tower would leave ajar the possibility of co-location with other carriers at the site.

"We're sick of telcos coming over the hills. This is new Telstra infrastructure in a new position. It's a high-impact facility in a sensitive location."

Telstra failed to respond before deadline.