Residents in Horncastle fear a road could be dug up - just weeks after it was resurfaced at a cost of hundreds of thousands of pounds.
Anglian Water has confirmed it is carrying out improvements to drains on Bowl Alley Lane.
The work comes after Lincolnshire County Council re-surfaced the entire road last September.
A spokesman for Anglian Water said they hoped to carry out the work without “impacting on the new surface.”
However, he refused to rule out the possibility of digging up the new surface.
One resident, who asked not to be named, said: “When we got letters from Anglian Water saying the work was taking place, we thought it was a joke.
“You’d have thought the two agencies would have got their heads together and done everything at once.
“It doesn’t seem as if the right hand knows what the left hand is doing.
“You can only ask how much this is going to cost.
“What a waste of money - and time. You wonder why Council Tax and water bills are going up.
“There’s also the disruption. It’s a busy road. There are two schools and it’s the only access to the Tudor Park estate.
“The whole thing beggars belief.”
Homeowners say they were delighted when the old surface was ripped up by the County Council last summer.
The resident added: “The workmen were here for about a month. There were loads of them.
“If you think it cost £10,000 to repair a few pot holes in the High Street, you can only wonder what they spent on resurfacing a whole road.
“It must have been hundreds of thousands.”
Antony Innes, from Anglian Water, defended the new work as essential.
He said: “From next week, we’ll be carrying out around £40,000 improvements to our surface water drains on Bowl Alley Lane.
“This work is essential to reduce the risk of surface water flooding which has been a localised problem in the past.
“We know this is a newly laid road, and we are going to be using very modern techniques which will avoid the need to impact the road’s new surface, lining the sewers from within.
“However, if for an unforeseen reason we do need to dig into the road we will ensure it is restored to the same high standard it is currently.
“We still need to close Bowl Alley Lane for safety reasons - even though we are not digging into the road - and we’re sorry for any inconvenience this may cause.
“Access will be maintained for residents and we’ve carefully timed the project to take place during the half-term holiday (February 16-22) to hopefully keep any disruption to a minimum.”
A spokesman for Lincolnshire County Council did not reveal the cost of the re-surfacing but said they had been assured by Anglian Water that the road would not be dug up.