Work has begun at Ilsham Green, near Torquay seafront.
Another group later occupied land nearby at Ilsham Marine Drive.
Wellswood Conservative councillor James O’Dwyer said the work had been paid for by residents in consultation with landowner Torbay Council and the local community partnership.
Cllr O’Dwyer said a freeze on non-budgeted spending meant the council had been unable to provide funding.
He said: “This came about because some travellers went onto the Green at the beginning of the summer.
“There had been a gate which was removed a number of years ago.
“This is a replacement to make it harder should people try to go onto public land.”
A Torbay Council spokesperson confirmed it had given permission for the gate to be installed on its land.
The council has reported groups of travellers this week at Clennon Valley and the overflow car park at Broadsands in Paignton.
Torbay has no designated travellers’ site so the council has to follow a two-week legal process to remove an unauthorised encampment on public land.
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