A popular Auckland bar has lost its liquor licence after locals complained the pub's patrons were having sex, defecating, littering and fighting in the street.

Ponsonby Rd's Three Brothers' licence will be cancelled in November, following a decision from a district licensing committee hearing.

In the hearing, the committee was told patrons at Three Brothers, also known as Harry's, caused "pandemonium", including numerous occasions where human excrement was found on the surrounding streets.

One resident said he regularly collected three buckets' worth of empty alcohol bottles and cans from outside his house thanks to untidy and disruptive patrons.

Another local, Beryl Jack, told the hearing a patron defecated under a hedge on the street before she moved the mess to the bin and disinfected the area.

In another incident, Jack claims drunk customers had urinated on parked cars and found faeces-stained clothing in a drain, Stuff reported.

Another neighbour told the hearing the mess has often spilt over to his local reserve, where he had found as many as three 40-litre buckets of empty alcohol bottles dumped.

He's also found used condoms, drug paraphernalia and gas cylinders.

When approaching drinkers, the neighbour claims they challenged him to a fight.

However, its owner says he will appeal the decision, saying locals are discriminating against his mainly Pasifika customers.

The owner claims he was told by one local "Ponsonby is not a place for brown people", and that many are discriminating against the ethnicity of the patrons.

The owner's lawyer told the hearing the objections were about people who weren't customers of the pub and claims it is police responsibility to deal with people on the street.

He also said the owner didn't serve intoxicated patrons and therefore any disturbances were unconnected to the bar.