The Unstone parish councillors, including the chairman, say they are thinking of resigning following a meeting over a mobile phone mast.
Residents were furious to hear a mast is being erected in a field in the village, near Dronfield, and angrily confronted the councillors at a meeting.
Councillors said they objected to the mast, but had limited powers and could not stop it.
The meeting erupted and councillors Fred Hopkinson, his wife Sandra, Geoff Musgrove, Michael Siddall and Steve Appleyard threatened to quit after they were falsely accused of taking bribes.
Chairman Coun Hopkinson told The Star: "We don't get paid, we do this job voluntarily.
"I've been a parish councillor for 18 years and chairman for 10 and this can't go on.
"One person accused us of getting backhanders, which is totally untrue, and they shouldn't make allegations without proof.
"We all recommended this mast be refused but there is nothing else we can do."