Here’s the problem, as I see it: some damage has already been done and that will be difficult to reverse, but as long as you don’t have a problem abiding by the restrictions you’ve been put under, you SHOULD NOT have to put up with harrasment and slander of your family and pet. To start, you should approach your neighbor (without the dog,) and politely ask them to stop their slander. Explain to them that your dog is not viscious, but that you are doing everything you can to make everybody in the neighborhood comfortable. In a very politically correct way tell them that the things they are saying are not necessary or appreciated and they need to stop. Document this. I don’t doubt they will continue, so document every time you hear them or that somebody else tells you what they have been saying. Write down the date, time and what occured. After a while, call the police and tell them that you are being harrassed. Provide the police with the careful documentation and they should be able to talk to your neighbors. The first time may not stop it, so continue documenting EVERY incident, then call the police again. If you kept calling the police without documentation, your neighbors could file a harrassment suit against you, but if you have recorded every incident possible very carefully, plus have documentation that you attempted to resolve the problem amicably, you will have what you need to pressure them. Don’t let it continue. If the wrong person hears that you are keeping a “nasty dog,” it could lead to somebody teasing, sabotaging, perhaps even poisoning your him!!!!