An 82-year-old woman told a neighbour's daughter that she was a "witch" and would cast a spell on her family and kill her pet dog, a court has heard.
The disputes began over a boundary wall, the court heard
Dorothy Evans denies verbally abusing the 13-year-old's family, who live next door in Abergavenny, Monmouthshire.
The girl's mother told Cardiff Crown Court how her daughter grew so scared of the threats she wore a crucifix.
Mrs Evans denies harassment and breaching an anti-social behaviour order.
The hearing was told Angela Casa's family feared she would have a nervous breakdown as a result of her elderly neighbour's behaviour.
The court heard how the Casa family had moved into their three-bedroom house in November 2004, and for the first year there were no problems.
But in December 2005 there was a disagreement over a boundary wall which Mrs Evans wanted to remove stones from.
Mrs Casa said from that point on her neighbour became abusive.
The jury was told of arguments over a lorry delivering paving stones to the Casas' house.
"Mrs Evans was shouting abuse through the window, saying that we had paid a company to park near to the tree and destroy the tree with fumes," Mrs Casa said.
The pensioner blamed the Casas' property for her home's flooding problems, but a council inspection found this was not the case, she told the court.
Mrs Casa said during parking disputes Mrs Evans had blocked her vehicle in and attempted to drive into it on several occasions.
She said the pensioner always used bad language towards her - once calling her a "slut" because she was sat on the front doorstep of her home - and her children were often present when the verbal abuse took place.
Mrs Evans had displayed photographs of the Casas' home in her garage window alongside a sign saying "scum", the jury heard.
"It's absolute hell. You're afraid to go out of your own front door, because you know she's going to start," Mrs Casa said.
"She's in the window watching you constantly."
Mrs Casa, who has had CCTV installed in her house, told the court she had developed a rash and was taking sleeping tablets.
She said Mrs Evans had threatened her daughter on "numerous occasions" and had told her she would have her pet Jack Russell destroyed.
She said her daughter wore a cross and chain around her neck because of the pensioner's comments about her being a witch.
"It has affected my daughter badly. She sleeps in my bed most nights when my husband is away," she said.
When cross examined from David Webster, defending, Mrs Casa said if she could find someone to buy the house, she would "move tomorrow".
"I just want a peaceful life, that's all. I don't want any more aggro.
"It's day in, day out, and I can't cope with it," she added.
Mrs Casa admitted saying she wished her neighbour was "six feet under", adding: "The only time I made that comment was when she had hit me with a walking stick, and I had a red line down my face."
Her husband Roberto, who lives in London during the week, told the court leaving his home was a relief but returning made his heart beat "10 to the dozen".
Mr Casa denied purposefully spraying Mrs Evans and her daughter with a hosepipe as they sat in a car outside his property.
Mrs Evans was arrested in July 2006 and charged in September, and had denied abusing her neighbours during police questioning, the jury heard.
The case continues.