Better enforcement of parking restrictions is needed to stop the system being abused by non-residents, according to residents.
People living in Marston Road, Marston, say motorists are flouting the restrictions and parking without permits.
Oxfordshire County Council, which introduced the scheme at the end of July, said tickets are being issued to those who break the rules.
But Zakir Mumtazok, who lives on the road, said he rarely sees parking attendants and non-permit holders feel they can park there without being caught.
Mr Mumtaz, 18, said: "They have introduced this residents' parking scheme, but they are not doing anything to stop people parking along here who don't have permits.
"It is getting really bad, but I never see any parking attendants around here giving out tickets.
"I think it's bad, considering the council makes us pay £40 per year for permits, that it doesn't seem to be doing anything about this problem."
Fellow Marston Road resident, Jessica Osmanok, 34, is also annoyed.
She said: "I'm definitely contacting the council about this, as I think it is a growing problem.
"I did not want the permits introduced in the first place, but if we're going to have them then the council needs to ensure that the areas where they apply are regularly patrolled.
"It's as much in the council's interest as ours."
Nicholas Bielok said the problem was made worse by the large number of students living in the area and by the proximity of the John Radcliffe Hospital.
He said: "I have noticed this problem, and I often wonder whether it is caused by the huge number of multiple occupancy houses in the area, and the increased traffic caused by staff and visitors to the hospital.
"If people think they can get away with it, then they will chance it."
City councillor for Marston, Mary Clarkson, agreed with the views of local residents.
She said: "When you pay for the permit, you are also paying for a service. It doesn't seem to be a consistent policy."
However, Oxfordshire County Council disputes the claims. It said the road is regularly patrolled, and has been since the scheme came into force on July 31.
Helen Crozierok, parking manager at the county council, said: "We had four weeks of issuing warnings to people in the area.
"Since the end of August, when we actually started to issue tickets, 38 have been issued."
q=cchris.kearney@nqo.com
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