The cover, in Trafalgar Road, Portslade, is loose meaning whenever a vehicle drives over it it makes a loud noise.
Nearby residents told The Argus it is “creating havoc all day and all night long”.
The route is the main thoroughfare to Shoreham Port and is therefore a busy road.
A resident, who wished to remain anonymous, said the problem first appeared “weeks” ago and so far little has been done about it.
“It’s giving us sleepless nights.
“It’s an accident waiting to happen – especially for cyclists and motorcyclists who use the road.”
Residents reported the problem to Brighton and Hove City Council and were told it was Southern Water’s responsibility to fix.
The resident added: “I called Southern Water last week and an independent surveyor was sent out quickly.
“I had a long chat with the surveyor who concurred that it was a health and safety issue and he would be putting it in his report.
“He said the longer it is left, the worse it will get.”
The offending manhole cover is in the southbound side of Trafalgar Road but residents in the northbound side are also being woken by the noise and have complained.
The Argus contacted Southern Water, which on Wednesday confirmed that a team investigating the manhole cover that day.
But residents say it is not enough.
“It is ridiculous that it has taken this long,” another resident said.
Southern Water has been contacted for further comment.
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