The “Upmarket” was supposed to open last weekend on February 4 at Middle Park Primary, showcasing “fine wares” by emerging artists, designers and gourmet food operators.

However, operators Belinda Buckley and Emily Armstrong have not submitted a planning permit application.

The business partners claimed Port Phillip council provided them with incorrect information about whether or not they required a permit. They said they would suffer “significant loss and severe damage to livelihoods” because of the delay in starting.

Albert Park ward councillor Judith Klepner said her latest advice was that the Upmarket did require a planning permit, which would involve comprehensive traffic and waste management plans and community consultation.

Ms Armstrong said the council advised her that because the market would be held on Department of Education land a permit would not be required.

Residents heard about the proposal in a Middle Park Primary newsletter. They brought the permit issue to a head when they complained about potential noise, traffic issues and the monopolisation of the school’s land on Saturdays.

Principal Jenny Rendall, who is on extended leave, said in a letter to Port Phillip council last October the school council had been impressed and felt confident with the market’s “high quality of organisation”.

Ms Rendall said the school had been considering other sources of revenue raising for some time, because government funding “falls significantly short”.

She said the school could not rely on the fund-raising efforts of “a small band of enthusiastic parents” into the long-term.

Richardson Street resident Lisa Michael lives directly opposite the school. She said she opposed ‘‘hundreds and hundreds’’ of visitors descending on the quiet neighbourhood – which has limited parking spaces – each weekend.

She said neither the market nor the council had consulted with residents.

The school council is meeting again this week to consider the issue.