A GIPSY site at the centre of complaints by neighbours has been given six months to "clean up its act''.
Durham County Council has approved the Gipsy Council taking over the management of the East Howle site, near Ferryhill, from Sedgefield Borough Council, which says it no longer has the resources to manage the site.
People living in houses near the camp say they have suffered a catalogue of problems and want the site closed.
Complaints include theft, damage, intimidation, and the dumping of rubbish and vehicle oil.
Residents also claimed that police had recovered hand guns being used on the site and that officers were instructed not to enter the site alone.
The county council's cabinet was told that there had also been fly tipping, cable burning, horse grazing and unauthorised encampments of caravans on nearby council land. Amenity blocks on the site had also been vandalised.
Resident John Rogerson said: "Attempts to solve the problems by changing the management have never been successful.
"The best option for the site residents would be to move them to other sites where there would be better provision.''
Site warden Peter Anderson said the camp was not properly run but added: "Were the camp to close, where would we go?''
Social services director Peter Kemp said there would be problems with closing the site or relocating it.
Councillor Christine Smith, who has the portfolio for promoting strong, healthy and safe communities, said: "Adjacent residents do have just cause for complaint.
"We could say this is the last chance and if it does not work it will definitely close.
"It is unfair that people have to put up with the intimidation that they have been suffering over quite a number of years.
"But I think we do have a duty and responsibility to the children of the parents there. We have to give them one last chance."
The council will look again to see how the new arrangement is working.
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