Tony Bramley of Whyalla Diving Services says that if the proposed development goes ahead on the Point Lowly Peninsula it will severely inhibit access for the divers who enjoy the area's unique marine life.
"I think it will destroy the area if it goes ahead," he said.
"If you look at the road they built to kingfish harbour, that area there used to be a favourite dive spot for the club and now we can't use it.
"Now they're saying they're not going to build it because they haven't got the funds.
"So they've bulldozed this huge area and what's going to happen there?"
The unique cuttlefish aggregation that occurs annually here has put Whyalla on the map and is recognised as one of the most spectacular naturally occurring events in Australian waters.
From the cuttlefish aggregation area next to the Santos exclusion zone, around to Black Point is an ideal breeding ground for the cuttlefish, who are attracted to the hard rocks where they attach their eggs.
The waters around there are also deep enough for an ore export jetty if the Port Bonython Bulk Users Group plans go ahead.
Mr Bramley rents out scuba gear, dry suits and snorkels during the cuttlefish migration.
He isn't worried about the possible loss of business, however he is worried about the loss of a unique diving spot.
"Before you know it we won't be able to access that area as well," Mr Bramley said.
The desalination plant is another issue but Paul Mazourek from the Whyalla Dive Club, who has been consulting with BHP in their environmental impact research, is satisfied that there is no major threat to the cuttlefish aggregation on that front.
"I was personally quite impressed with the research so far," he said.
"My basic approach so far is the research is continuing quite well and it is under control but it is still early days.
"With other issues with the further development it's very difficult because it will destroy the scenery completely," he said.
Deputy Mayor Eddie Hughes also is quite confident that the desalination plant won't have any adverse impact on the waters around Point Lowly.
"The desalination plant I don't have any major concerns about what I do have concerns about is the wholesale industrialisation of the Point Lowly Peninsula.
"It's a beautiful area and it is a major recreation and environmental resource for this community and for people from outside this community," he said.
"It is an area with a world class phenomena with the cuttlefish aggregation.
"So I think we've got to be very sensitive about what we do in that area."