Residents of Sneem in Co Kerry have complained to the council of "an atrocious smell" from the village's sewerage system.
Taoiseach Bertie Ahern recently returned from holidays in nearby Parknasilla and was a familiar face in the village during the summer.
The council said "increased development" which includes hundreds of holiday homes and a large hotel, have put a strain on the water and sewerage system.
Water is also currently being turned off at night because of inadequate supply.
Artist Rosemary Bradshaw who lives in Sneem said the smell near the eastern edge of the village was very bad. Tourists as well as locals were complaining.
"We are living in near-third world conditions at the moment - it's awful," she said on local radio yesterday.
Sneem, one of the prettiest villages on Ring of Kerry is a former national winner of the Tidy Town's competition.
A statement issued by the council yesterday said water engineers had identified the source of the smell as a "malfunctioning sewer pipe" which would be replaced.
"A waste-water treatment plant is currently being constructed in Sneem. When this is operational, it will alleviate any sewerage problems which may occur in the village," the statement said.
Increased levels of development in the Sneem area had led to greater demands on the water supply.
"As a result, the supply in certain areas of Sneem is turned off at night in order to conserve water."