A Queen St resident, who declined to be named because he feared for his safety, said the campervan had been parked on double yellow lines in his Woodhaugh street since last weekend.
Despite repeated contact with the Dunedin City Council and police, the van and its owner had not been moved.
He said the occupants often played very loud music during the day, frequent loud arguments with obscene language could be heard at various times of the day and night, a variety of rubbish (including beer bottles and cans) were being left in the street and a nearby park, and they appeared to be using the gutter as a toilet.
"The noise is mostly in the early hours of the morning which has woken us from our sleep on many occasions. If he was just a quiet person, quietly camping for a few days, I wouldn’t be so upset. But we actually fear for our safety.
"I fear for the safety of my family and my house and my car.
"He appears aggressive. Who knows what he’ll do," he said.
"His behaviour has suggested that he has no respect for police or law and order, generally.
"We feel worried and scared and powerless."
He said he had contacted Dunedin City Council staff on several occasions, but the problem continued.
"The people are still illegally living in their unmoved campervan.
"We are law-abiding, rate-paying citizens of Dunedin but we are being let down, whereas the law-breaker is allowed to continue their illegal and inconsiderate behaviour."
Attempts to contact the owner of the van failed.
A council spokesman said it was "an unfortunate situation for all concerned" because the van was occupied by homeless people.
"While it is true the campervan is illegally parked on yellow lines, and our parking officers have issued an infringement notice, this is also about people who have nowhere else to live.
"We will be speaking to the occupants of the vehicle again soon to try to resolve the situation, including offering advice on where they can park and other welfare support, as we have done in similar situations before."
He said it was important to note the situation was not a freedom camping issue.
Recent changes to the Freedom Camping Act meant council could no longer take enforcement action against people living in such vehicles if they had no other residential accommodation to live in.
"We also appreciate the concerns of the residents living nearby, and we are in contact with them as well.
"We will endeavour to resolve this as quickly as possible and in the best way for all concerned."
