Rotherham Council said the proposed traveller site, which would replace the Streetpride depot on Dog Kennel Hill, Kiveton, would accommodate up to 24 caravans on six to eight pitches.
The authority says it needs to provide space for eight pitches to fulfil need.
It is much fewer than needed in neighbouring Sheffield (47), Doncaster (45) and Barnsley (35).
The owner of a traveller site at Station Close, South Anston, has submitted a lawful development certificate to RMBC to get the site formalised and has been used to accommodate up to five caravans for more than 10 years.
If it is accepted and formalised, this could reduce the number of pitches required at the Kiveton site.
Planning policy manager Andy Duncan explained that the Magilla site could only be used for travelling show people, and that the council needed to provide separate sites to suit the differing needs of gypsy and traveller communities.