Plans for a £39,000 bus loop in Beeston have been scrapped after bus companies said they wouldn't use it.
Nottinghamshire County Council drew up the proposals which would have prevented buses terminating in the town from using the new tram-bus interchange.
The work which would have included changes to parking restrictions has now been halted, but new bus stops will still be added on High Road and Regent Street.
And people living in the area have said they are angry about the debacle.
Carol Evans, 33, of Inham Road, Chilwell, said: "I thought it was really daft to have a bus-tram interchange when half the buses will stop a fair walk away.
"But all this just makes you think it should have been planned better. The council should have spoken to the bus companies before a penny was spent."
And Adam Guest, 20, of Chilwell, added: "It's bad there's been this squabble over the bus-tram interchange.
"I think after the problems that the tram has had through Beeston anyway, this is another bit of bad news."
Nottingham City Transport confirmed to the Post they would not need to terminate buses at the new station and Trent Barton said its Indigo buses would not need the loop either.
There were concerns about there not being enough space for buses to terminate at the new interchange – but this is no longer a problem.
Beeston Rylands councillor Steve Barber said: "Because of the misleading statements the county unfortunately invested several thousand pounds on a loop facility for terminating buses on the other side of Beeston.
"I always maintained that this was unnecessary."
Mark Hudson, Group Manager for Transport and Travel Services at the county council, said: "We had planned a mini-scheme on Humber Road and Regent Street to accommodate bus services which, because of their routes, could not use the new interchange.
"However, during the consultation the bus operators advised the county council that they are going to operate services as through services, therefore the scheme is no longer required.
"There will be some improvement works to the bus shelter and stop on High Road and a new bus stop at the southern end of Regent Street to accommodate buses which need to lay over for short periods.
"This new stop will not have any impact on local residents or businesses."
