The City Council is headed for a showdown with local preservationists over a rezoning plan for Hudson Square neighborhood in Lower Manhattan.

The proposal allows residential development within an 18-block area between West Houston and Canal Street near the Holland Tunnel.

Local preservationists are against the plan, saying it will adversely impact quality of life for the neighborhood's residents.

The Greenwich Village Society for Historic Preservation wants to reduce building heights and create additional open space.

The City Planning Commission approved the proposal Wednesday.