For years, an alley behind Main Road and Park Lane in Duston, Northampton, was plagued by vandalism, arson and drug users.
When residents tried to confront youths, they claim they were subjected to a barrage of abuse and physically assaulted.
In August last year, 12 neighbours clubbed together to pay £2,500 for 6ft-high wrought iron security gates to be installed at the entrance to the alley.
Since then, they say, there has not been a single act of vandalism and their lives have been transformed.
But, although the residents had the backing of Duston Parish Council, they did not get official planning permission from Northampton Borough Council.
Northamptonshire County Council – the highways authority – has now decided the alley is a public right of way and yesterday contractors removed the gates.
Bob Tee, 76, who has lived in Main Road, for 38 years and is one of the 12 residents who paid for the gates, said: "I'm very disappointed. We had five years of hell before the gates were put up. We complained about what was going on, but no one listened. My biggest fear now is the criminal activity will start up all over again."
Jacqueline Shettle, 54, of Park Lane, whose garden backs into the alley and who also helped buy the gates, said: "We had no end of trouble until the gates went up. It's a disgrace that they're being taken down."
Residents say the alley is not a public right of way but private property and a sign near its entrance, which has been in place for two decades, says: "No entrance, private road".
A County Council spokeswoman maintained the alleyway was a right of way and the gates constituted an illegal obstruction.
She added: "We have received complaints from members of the public wishing to use the alleyway for access to local shops.
"We will take all necessary action to ensure the path is available for public use."
louie.hadley@northantsnews.co.uk