Little Stars Day Nursery in Ashton-on-Ribble, Preston, bought the equipment in May 2008, following a recommendation by Ofsted that it should introduce more challenging equipment to the outdoor area.
The nursery built the playset in the garden, but at the time was unaware that it needed planning permission.
Five months later Little Stars was told by Preston City Council that in order to keep the £6,889 installation, it would have to acquire planning permission, after neighbouring residents complained that children were able to see into their houses from the bridge across the top of the playset.
The nursery submitted an initial application but withdrew it after being told it would fail. A second application outlined possible compromises, such as turning the playset to face a different way or putting up a screen.
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