Anonymous letters are circulating a Basildon estate warning parents to lock up their children if a home for the mentally ill is built there.
The strongly-worded letters posted to residents warns of paedophiles and dangerous criminals coming into the community.
But today (Friday) council chiefs called for calm, and denied there would be criminals in the home.
The reassurance came amid talks over whether to give planning permission to the home in Barstable.
Moat Housing Group has applied to build an eight-bedroom residential home for care in the community patients at Heron Dale.
Planning permission was deferred by councillors last month following opposition from residents.
Dozens of letters were dropped through letter boxes this week claiming paedophiles and dangerous psychiatric patients would be allowed to roam surrounding streets.
It also warned residents to upgrade the security of their homes.
However, Basildon Council chiefs today urged calm and said residents would not be put at risk by the home.
A spokesman said: "The proposed residents will not be inmates or be any danger to people in the community, and they are categorically not paedophiles.
"They will have had long-term mental health problems for which they have received specialist care for many years.
"Their condition has stabilised and they can return to life in the community but have no family to support them.
"All the residents will come from the district, will be aged 52 to 70, and will be provide with somewhere they can rejoin the community."
The storm follows massive public outcry over a decision allowing a medium secure unit for the mentally ill to be built in Pound Lane, north Benfleet.
Councillors warned residents they would only be able to refuse the Barstable application on planning grounds.
Central Basildon area committee voted to defer planning permission in February amid fears the development would lead to parking problems.
Councillors are due to visit the site in the near future.
Committee vice-chairman Alf Dove said: "Officers have advise us that we can only refuse the application on planning grounds. We are worried about over-development of the site and the problem of parking."
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