Catherine Burgess lives across from the rest stop where the tent has been pitched for about the past 3.5 weeks.
"I feel sorry for her. If I had an extra room I would take her in, but I don't. It's like a third-world country."
She had been in touch with the council and was not happy with the lack of resolution.
She felt it was dangerous for the woman to live in the open, as sometimes there were "riff-raff" in the area at night, she said.
Council community services manager Meagan Holmes said staff have visited the woman regularly. They have encouraged her to register for social or emergency housing.
"We sympathise with Sheree's situation, and even though we have given advice and information to Sheree, she needs more support than council is able to provide to resolve her housing needs.
"Staff have contacted a social worker from St Peters House and asked if they could visit Sheree and work with her to help her resolve her situation."