A waste transfer station and civic amenity site could be developed in Ystrad Mynach, despite similar plans being scrapped.
The new proposals differ to those dating back to 2005 that would have seen waste processed and treated on site.
The current plans would see household waste, collected by the council, temporarily stored at the council-owned Dyffryn House, on Dyffryn Business Park, before being removed to an external processing plant.
In the future the facility could house skips for the public to dump their own waste.
A report outlining the business case says there is an urgent need of provision as the Full Moon site in Crosskeys is under sized.
Caerphilly County Borough Council bought Dyffryn House in 2005 for £5.2m following the closure of the St Ives printing company.
A businessman who has just secured a contract with Newport Gwent Dragons said he would have to relocate should the proposal get the go ahead.
Alan Evans, owner of Ace Hog Roasts and Catering Services, has traded from the industrial estate for 22 years and has the top food hygiene rating available.
He said: “It would increase flies and impact my food hygiene rating. I’d have to move, we couldn’t trade from here with that sort of facility so close.
“It would have a massive impact on my business. We are finally growing after the recession and we need this like a hole in the head.”
The company has taken on two new members of staff after the deal with the Dragons region, which will be training at the council’s new Centre for Sporting Excellence in Ystrad Mynach.
Mr Evans also said they are in talks with Cardiff City Football Club who will be using the facility.
The report says phase one, the transfer site, would cost over £800,000, with the civic amenity site exceeding £1.2m, but claims the new facilities will save the council £100,000 a year.
A spokesman for the ruling Labour group said it would be premature to comment on the proposals before they are considered by the council’s Cabinet on July 30.
But Caerphilly Observer can confirm Dyffryn House is the chosen site for the waste transfer station, although planning permission must be sought.
Llanbradach councillor, Colin Mann, who heads the Plaid Cymru opposition on the council, said the plans need to be considered carefully.
He said: “There is fear that the transfer station may develop into other uses – the public need assurances that this is not the intention.
“It will generate a substantial number of extra lorry movements.”