Land close to the reserve was included in the draft Peterborough Local Plan but has now been removed, along with proposals for large-scale housing at Wittering located between three Sites of Special Scientific Interest.
However a specific policy to protect the area within the John Clare Countryside project has not been included.
Martin Baker, Cambs Conservation Manager, said: “The proposal for homes close to Castor Hanglands would have had a significant impact on this precious and historic nature site – well done to everyone who wrote letters and made their view clear, the reserve is safe for another day.
“But it is a mistake for Peterborough City Council not to include a policy commitment to protecting and enhancing the whole John Clare Countryside area. Conservation groups in this area have spoken with one voice on the need to protect this special corner of central England – and we will keep fighting for its nature and heritage as the push for new housing developments continues unabated.”
The Trust will be submitting its response to the consultation on the latest Peterborough Local Plan ahead of the closing date on November 12.
The Huntingdonshire Local Plan has also been out for consultation recently and the Trust has responded with its views.
The Trusts response expresses disappointment that the plan includes the 10% legal minimum of Biodiversity Net Gain for developers, rather than the 20% adopted in other areas.
The Trust is also concerned that the scale of housing proposed at Lodge Farm and Wyton Airfield will result in renewed calls for a Huntingdon Eastern bypass through Godmanchester nature reserve. Trust supporters had previously successfully campaigned against this "road to ruin".
Martin said: “There are some very welcome green and blue infrastructure policies in the Huntingdonshire Local Plan but the failure to set the Biodiversity Net Gain level at 20% is likely to result in worse outcomes for nature and less wildlife rich greenspaces provided within new developments.
“We are now starting to see the effects of the Government pitting nature against economic growth being translated into weakened biodiversity planning policies even where local economic conditions would support more ambitious targets. This will have real negative impacts on nature locally with less habitat created and lower quality greenspaces close to new housing.”