The national housebuilding firm Persimmon and Carlisle city Council are in a legal row over whether traffic lights should have been installed at a road junction.
The company was supposed under planning conditions to install traffic lights at the junction of Windsor Way and Kingstown Road before the 20th new home on an estate near the junction was completed.
But residents say 50 homes are now complete and 40 occupied, but no traffic lights have been installed, and some suggested work should be halted on the 600-home development.
A Carlisle City Council spokeswoman said: "These concerns have been passed on to the developer who are in discussions with the highway authority regarding their planning obligations."
A spokeswoman for Persimmon Homes said the company was working with the county council to ensure the work was done, with the finalised design now being reviewed by the Highways Department, adding: "Persimmon Homes are committed to completing the improvements as soon as possible."