A long-running feud between neighbours over rubbish bins has exploded into a chainsaw showdown in a Melbourne driveway.

The bizarre clash erupted on a shared residential block, where tensions had been simmering for months over where the bins should be stored.

Jolon, 21, who lives in the front unit with her family, keeps their rubbish bins at the far end of the communal driveway against a fence.

But her neighbour, Danielle, claims the bins obstruct access for her car.

Footage aired on A Current Affair showed Danielle walking towards the bins in a party dress, red lipstick and high heels while wielding a chainsaw. 

The mother-of-three then attempted to cut down a tree chained to the bins, as Jolon screamed at her to stop and tried to block her path.

'You're in my face, move!' Danielle yelled as she pushed her pyjama-clad neighbour while brandishing the chainsaw.

'Move your bin and we can put the car in,' Danielle shouted. 'Just move your f***ing bins.'

'What are you doing?' Jolon repeatedly demanded as the confrontation escalated.

Danielle eventually cut the bin handles free from the tree and appeared to drag them onto her neighbour’s section of the driveway.

Jolon's family has lived at the property for 30 years and said they refuse to move the bins onto their own section because it would block access to their garage.

She also gave the show footage of boxes and buckets filled with sand lined along the fence between trees, which she claims were placed there to prevent the bins being returned to their usual spot.

'My heart was beating out of control,' she said.

Victoria Police are investigating.