Taxi drivers have been warned that if they repeatedly beep the horn as they pick up customers, they may be served with an anti-social behaviour order.
Drivers say they do not use their horns illegally
North Wales Police say a consultation shows the use of horns "at all times of the day and night" in Colwyn Bay is damaging people's quality of life.
A police letter has been sent out to cabbies calling on them to end the practice.
But the drivers have said they only use their horns within the legal hours.
The official warning was issued after a consultation with people in Colwyn Bay showed that the use of car horns by taxi drivers had become prevalent.
The taxi drivers who sometimes sound their horn instead of walking up a drive to knock on a customer's door have been told to bring an immediate and permanent end to using their horns or face being issued with an Asbo.
Local driver Eryl Hughes, who has been in the business for 10 years, has condemned the move.
"I think it's a bit ridiculous to be honest with you," said Mr Hughes.
"At the end of the day we're trying to do our jobs.
"When we do toot a horn it's not late at night as they try to imply. It's within the times within the law."
Cabbies have said they are obeying the police request but that some customers are missing their taxi because they do not realise it is there.
Superintendent Simon Humphries of the Central Division Command team said North Wales Police take anti-social behaviour "very seriously".
He added: "We listen to the concerns of residents of north Wales and some of these are people whose quality of life is significantly affected by the inconsiderate and frequent use of vehicle horns at all times of the day and night.
"We will continue to take fair, reasonable and proportionate action to uphold the quality of life of the residents of north Wales."