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Planners have admitted they do not have enough funding to create a rail link between the Hoo Peninsula and the Medway Towns.
Work has begun to determine how Medway Council will spend £170 million of government cash developing 10,600 new homes and infrastructure on the peninsula.
A new railway station is central to the project and will provide a service into London - but it had been hoped there would also be a link to Strood.
A consultation is currently under way asking for people's views on the initial proposals, which the council is expected to deliver before a deadline of March 31, 2024.
During a meeting of its regeneration, culture and environment overview and scrutiny committee yesterday evening (Tuesday, March 23), the council's assistant director for regeneration, Sunny Ee, answered councillors' questions about the plans.
Cllr Andy Stamp (Lab) criticised the lack of data in a report for councillors updating them on the progress of the project and raised concerns about there being no commitment to delivering a rail service to the Towns.
The report revealed a "demand analysis" had taken place and had concluded there was "not enough demand for a local Medway service".
Mr Ee told councillors how stakeholders, including Network Rail and the Department for Transport, had been consulted which led to the conclusion of establishing the link only to London.
He added: "This may evolve but where we are the moment, the focus is definitely on London in terms of what service can be provided.
"As we went through the design, it became clear that electrification would make the London service more viable and easier to deliver and that then became the focus.
"It became the choice of which one can we afford to do because we couldn't afford to do both the Medway service and electrification to London."
He went on to explain how Southeastern, being the rail provider also refused to deliver the service to Medway, citing lack of demand as the reason.
Councillors were assured this position could change once houses were built but additional funding would need to be made available to pay for a link to Medway.
Committee chairman Cllr Gary Etheridge (Con) said: "I've got to admit, I am extremely disappointed to understand the scenario being put to us that we can't have a local rail network into Strood because part of my regeneration thoughts for Medway is that we should be encouraging people who live in Medway and the surrounding areas to work in Medway and not take their hard-earned salary on a train going to London to spend their money."
Councillors also questioned the extent to which compulsory purchase orders (CPOs) would be required to obtain land for the development.
Mr Ee said whilst "it's not something we would like to use under any circumstances", sites had been identified which were not under council or highways' ownership and work was continuing to determine which land would be required.
He said the council had begun the legal process for CPOs and had engaged with landowners but emphasised these would be relied upon only "as a back up".
The consultation is due to close at midnight on Tuesday, April 6.