City of Ballarat chief executive officer Richard Hancock yesterday revealed no compensation would be offered for residents adversely affected by the development.

The revelation comes despite speculation some adjoining landowners would receive pay-outs as a trade-off for having the $29 million saleyards and abattoir in their backyard.

But Mr Hancock dismissed the idea, saying no compensation would be offered to residents under any circumstances because the plans for the proposal - currently on public exhibition - complied with planning requirements.

"We believe we have been able to put the correct buffer zones in place as required by the planning scheme in relation to traffic, dust and noise and we believe we have done everything possible to minimise those impacts on the Learmonth community.

"There are many differing opinions about whether there will be any impact adverse or otherwise on property values ... and at this stage there would be, again, no compensation from council on that ground or any other grounds that are put forward."

Learmonth Environment Action Group chair Wendy McNabb said there was speculation in the Learmonth community that some adjoining land owners would be entitled to compensation for impacts including property depreciation and loss of amenity.

Ms McNabb said that while the issue was not central to the group's campaign, the council could rightly expect compensation claims from opposing residents.

"If it goes ahead I think the council would be foolish to ignore the fact that people would be severely affected and would be demanding compensation," she said.

Saleyards Advisory Committee chairman and Learmonth Ward Cr Wayne Rigg said talk of compensation was purely speculation and detracted from the planning process.

"There has been plenty of rumour circulating that people on both sides of the fence ... are receiving some form of compensation. The fact is there has been no compensation offered and nor will there be and speculation on such things is not helpful to the process."

Public submissions on the proposed saleyards development close on November 21.