The crumbling caravan, parked in Hamilton Street, was previously dumped in Glasgow Road until Aldi was built in 2013.
Hamilton Street resident Margaret Gallon (54) said: “It’s an eyesore.
“We bring it up every month at our tenants’ association meetings.
“The stuff lying round about it is absolutely disgusting.”
Another local homeowner, who asked to be kept anonymous, said: “I feel sorry for the person who opens their curtains and sees that.”
Police have insisted they don’t have authority to remove the rickety caravan as its owner is complying with the law.
Caravans don’t need to be taxed or insured and can be parked on roads so long as they don’t cause an obstruction.
The owner, who was unavailable for comment, lives in Glasgow Road.
A police spokesman said: “The caravan is less than 50 metres from the owner’s front door so they’re allowed to keep it.
“Police don’t have powers to remove it as it’s parked on the right side of the road for oncoming traffic.”
Falkirk Council has echoed the police position and said its hands are also tied in relation to getting rid of the caravan.
Like officers in the area, the local authority has been approached by disgruntled homeowners demanding a solution.
However, a council spokesman said: “We take advice from Police Scotland.
“Unless the caravan is causing an obstruction, there isn’t action that can be taken in relation to its removal.”
The local authority advised residents with queries about the situation to visit their website.