The application, the town council says, should not be decided by Gloucestershire County Council.
Town councillors have written to Eric Pickles, the Secretary of State for Communities and Local Government, to call in the application.
The county has already agreed to award a contract to Ubaser Balfour Beatty to build the incinerator in Haresfield.
If the scheme does not go ahead the county will have to pay a £15 million penalty to the company.
In its letter to the Government the council said it was “concerned about the democratic process being subverted by the £15 million penalty clause”.
The letter states there are grave concerns about the possible effect on people’s health as a result of the emissions.
The Town Council says that there is insufficient waste to justify an incinerator and there will be even less in future with the increased use of recycling in the locality.
Councillors object to the incinerator being built in an Area of Outstanding Natural Beauty, calling it “hugely intrusive”.
The town council are urging members of the public to write to the Government, asking for the proposal to be called in. More information is available at www.glosvain.info.
“We strongly object to this application and have grave concerns that with the £15 million penalty cause it will not be duly and objectively dealt with by the county council,” said Amanda Moriarty, Stroud Town Mayor.
“We are urging the Government to step in and call in the plan and would urge residents to also write to Eric Pickles.”
The county is likely to consider the planning application in February.