A protest is being staged outside a hotel in Conamara, which has been offered as a potential accommodation centre for International Protection applicants.
Locals opposed to the move say they plan to maintain a round-the-clock presence at the Carna Bay Hotel.
The property has been used to house those fleeing the war in Ukraine since 2022.
More recently, the premises was offered to the Department of Integration for use as an IPAS accommodation facility.
The department said that an appraisal of the offer has been paused for three months to allow locals to advance a proposal to develop a community hotel at the site.
A spokesperson said the appraisal process would resume in June.
While there has been ongoing speculation about the planned future use of the property, elected representatives have been given no notification from the department about plans to house asylum seekers there.
A public meeting in the village earlier this month heard concerns about the provision of services in the rural area, which is located around 80km west of Galway city.
Community representatives say the hotel is a vital element of the local economy and are critical of the level of engagement they've had with officials in recent weeks.
Méadhbh Ní Ghaora, from the recently formed Grúpa Gníomh Óstán Chuan Chárna, said a number of people gathered outside the hotel yesterday evening and would remain there until they had assurances in relation to the planned future use of the building.
She emphasised that the protest was made up of those from the immediate area, who wanted to ensure that the village itself could avail of the essential services provided by the local hotel.
Ms Ní Ghaora said several other businesses depended on the provision of tourist accommodation in the locality and also pointed to the need for a dedicated location where the community could gather and interact.
The department reiterated that a pause on the appraisal of the hotel was still in place.
In a statement, it said there was "no contract in place for accommodation for International Protection applicants at this site", but that some people fleeing the war in Ukraine were still being housed there.
