Fred the 13-year-old Staffordshire Bull Terrier has been made subject to the 'Instant Restorative Justice Order' — believed to be the first time one has been issued in Lancashire.
It follows complaints about his behaviour in Hurst Green.
Now, if he is walked off lead or attacks a dog or person, Fred's owner, 69-year-old grandfather John Carrington, could face court action.
Ribble Valley Council and the police said they had obtained the order following a string of complaints.
But Mr Carrington hit back and said Fred was "absolutely harmless" and that a "big deal" was being made out of a situation that had been resolved.
The council said the dog had been involved in "numerous attacks involving other animals" and had also bitten a dog owner as she tried to protect her pet.
James Russell, environmental health manager at the council, described the order as "an ASBO for dogs" at a meeting of the health and housing committee.
Zero
He said the council wanted to send out a "strong message of zero tolerance about aggressive pets".
Mr Russell said: "The animal was known to us and had a history of attacking other animals.
''Where there is a tendency for a dog to be aggressive then his owner has a responsibility to keep it under check."
Coun Stuart Hirst, chairman of the committee, said: "The owner of the dog now has a legal responsibility to ensure that it is behaving correctly and if he doesn't comply with the order he may have to go to court.
"This is the first time we have taken such action.
"It is not only anti-social but very dangerous."
Lancashire Constabulary confirmed an officer had served the order at Mr Carrington's address.
But Mr Carrington, of Longridge Road, hit back and said: "A big deal is being made out of something which has been sorted out between myself and the dog warden.
"Fred was involved in a dog fight with one of my friend's dogs.
"He is absolutely harmless and practically has one foot in the grave. He's 13 and wouldn't harm a thing."