The looming showdown comes three weeks after jihadist attacks in Barcelona, the capital of Catalonia, and a nearby seaside resort that killed 16 people and wounded more than 120 others.
A man stood near the Catalan parliament today morning holding a large sign in English, French and German reading "Freedom for Catalonia".
Nearby another small group of men held another sign against the referendum which accused it of being an attempt to "cheat democracy", an expression used by Prime Minister Mariano Rajoy on Monday to dismiss the planned plebiscite.
They made a request to introduce the bill in the assembly just after 9am (local time) and by 10:30 (local time) were still debating wether it should be admitted.
The bill is expected to be voted on during a special urgent session with little debate, and then top Catalan government officials will swiftly sign it.
Rajoy has vowed to immediately challenge the law in Spain's Constitutional Court. His government has also threatened legal action against top Catalan political figures involved in the plebiscite.
Catalonia, a region of 7.5 million people with its own language and culture that accounts for about one-fifth of Spain's economic output, has significant powers over matters such as education, healthcare and welfare.
But Spain's economic doldrums and a perception that the region pays more in taxes than it receives in investments and transfers from Madrid have helped push the cause of secession from the fringes of Catalan politics to centre-stage.
Lawmakers who back independence won an absolute majority in the 135-seat Catalan regional parliament for the first time in a September 2015 election. The government that emerged from that vote vowed to begin the process of breaking away from Spain.
Rajoy responded by promising new investments in Catalonia and regularly sent his deputy to the region, but made no significant reforms regarding the division of powers that addressed Catalan concerns.
"If some sort of deal had happened in the past, I personally think we wouldn't be where we are today," she told AFP.
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