Businesses have been left "outraged" and "upset" after a number of bins were left near their doorstep.
A large bin had been available for residents of the Vesta Avenue location to use, at the back of a row of shops.
However, according to St Albans City and District Council, this bin was removed due to it being used by local businesses who did not have permission to use it for their waste.
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Residents have since been leaving their non-recyclable waste on a grass area outside of the Vesta Avenue businesses, to be collected on behalf of St Albans City and District Council.
Despite the bins being collected in the early morning, some collections have been missed.
St Albans City and District Council are currently working to "resolve problems" with the waste collections.
A spokesperson for one company described the situation as "damaging to small businesses".
They have also described the feeling of businesses as "outraged" and "so upset".
Chris Traill, strategic director of community and place delivery for St Albans district council, said: "There have been issues with fly tips and inappropriate rubbish disposal at Vesta Avenue which we are taking robust action to resolve.
"We are seeking the support of local businesses as well as residents to do this.
"Residents at flats above a row of shops and other commercial premises were provided with a skip-sized bin for their non-recyclable waste, but unfortunately this was abused by some local businesses.
"They were using the bin to dispose of their commercial rubbish rather than pay for a private waste contractor to take it away.
"Under waste legislation, businesses must dispose of commercial waste separately to household waste.
"Our enforcement team warned nearby businesses about their responsibilities and found some could offer no proof they had an arrangement with a waste contractor.
"The residents’ bin continued to be abused and, as a result, overfilled with a fly-tip of rubbish forming around it.
"Enforcement action will be taken against businesses who continue to abuse this service.
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"In view of the continued problems, we had no option but to take the bin away, clear up the fly tip and provide residents with an alternative way of disposing of rubbish.
"We are working with our waste contractor to make this work effectively for residents and resolve problems.
"We will keep residents informed of our plans."
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