The signs, on Church Road, state there should be no parking between the hours of 12pm-8pm.
But angry residents have said the plans will disrupt activities at the village hall and church, which are also located on Church Road.
Angela Alderton, chairman of the village hall committee, said the effect of no parking will be huge.
"Most meetings and activities take place during the day or start at 7pm," she said. "This is bang in the middle of the restrictions.
"People will have nowhere to park. It is beyond my comprehension why highways deemed these restrictions and necessary. They must have a very cavalier attitude."
A spokesman for CDC said yellow line restrictions had been in force in Bibury for some time but the authority was unable to issue parking tickets to anyone ignoring the lines until the signs were in place, detailing at what times the restrictions applied.
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