Taxpayers in Yarm face a bill of up to £50,000 because the town council lost its legal challenge against parking charges plans.
Stockton Council is welcoming the High Court ruling supporting its proposals for pay and display along the High Street.
Campaigners say it may damage the local economy and inconvenience residents.
The town's Mayor, Jason Hadlow, says Yarm Town Council had been asked by the people of the town to fight the charges and that is what they had done.
He told ITV News he was 'incredibly disappointed' after losing the Judicial Review. Stockton Council says it isn't surprised by the High Court's decision and believes it is another confirmation that it continues to follow a proper process to improve parking in Yarm.