China Blue provided them and they now stand on the Coronation Road roundabout, which had fallen into neglect after cutbacks last year.
Around 27,000 drivers a day pass the spot on their way through Totnes, one of Britain's most picturesque towns which is also a magnet for artists and musicians.
But local newspapers and online messaging boards have since been inundated with complaints.
Chris and John Keleher, a retired couple, said: "The offending gnomes may be appropriate in Las Vegas or in Disneyland but to claim that they enhance the image of Totnes in any way is to insult the values of what Totnes is supposed to stand for.
"Surely the town aspires to be a place which demonstrates taste and quality of life.
"At a major entrance to the town we should be presenting visitors with that kind of image rather than these tacky things which some misguided souls believe reflect the spirit of the place and that they are - God help us one and all if indeed they are amusing in some way."
Hazel Fuller, of Dartington, said: "Please assure me I haven't been imbibing an illegal hallucinogenic substance and that the shiny blue monstrosities on the roundabout in Totnes are not a figment of my fevered mind...
"While community volunteer gardeners are doing their best to green the town, what do we get on the roundabout?
"Grinning, shiny blue objects with hideous faces that destroy the effect of any planting behind them.
"Please let them be banished to their rightful home, underground, forthwith."
A local ecologist, Jonathan Crinion, has even called on Totnes town mayor Judy Westacott to step down over the matter, saying she was responsible for a "breach of public trust and humiliation" which was "inappropriately construed as fun."
But those responsible for the roundabout, Totnes in Bloom, have leapt to the gnomes - and the mayor's - defence.
Ann Rutherford, spokesman, said: "Real Totnesians have fallen about with laughter at the blue gnomes. They are great fun.
"It is only uptight, humourless incomers who object.
"Do we constantly have to go round in hair shirts eating organically grown food?"
A local botanist, Joy Hanson, added: "The council had received many complaints about the untidiness of the roundabout over many months and no other businesses would support tidying it up and its long term maintenance.
"It is easy to stand on the sidelines and gaze and do nothing as our static gnomes are doing all day, but putting in positive input to our town is much more rewarding."