A noise-hating neighbour who recently moved to an inner-city suburb has succeeded in shutting down live music in the courtyard of the pub next door after just one complaint, in an incident that has sparked fresh debate about licensing restrictions and NIMBYs.

The Harold Park Hotel in Glebe admitted it has flouted development rules for at least five years by hosting Sunday afternoon live music sessions in its alfresco courtyard without permission.

Local band members Pat, Sam and Alex play in the outdoor courtyard of the Harold Park Hotel in Glebe.

But fifth-generation hotelier William Ryan told the Herald "the system ain't right" if a single complaint could lead to his popular, mostly acoustic event being muzzled.

"No one complained in five years. The system is broke if one person can upset the apple cart," he said. "I'm not in the right here but I'm definitely not in the wrong."