STELLARTON, N.S. -- The revelation that a local bed and breakfast was catering to patrons into bondage, dominance and sado-masochism has left neighbours agog in a small town in northern Nova Scotia.

Kelly McAlear and Leslie Ogle of Stellarton opened the Euphoria B&B in September, but they closed the business last month when police learned they didn't have a proper permit.

The couple could not be reached for comment Tuesday.

Town planner Roland Burek says the pair recently obtained a permit application, but the town official said their neighbours could launch a legal challenge because a restrictive covenant in local deeds prohibits home-based businesses, including inns and lodgings.

"There were some complaints that were lodged with the town by some of the neighbours over the last three weeks," Burek said in an interview.

"Some people were concerned about the type of clientele and the activities they might be attracting ... But it's my personal view that ... what consenting adults do in private is their own business."

Having worked with the town for almost 14 years, Burek said he couldn't recall any S&M-related businesses setting up shop.

Neighbours on Poplar Street said they were stunned to learn about the unusual business, located inside an unassuming suburban home built in the late 1980s.

Resident Venus Bishop said most of her neighbours learned of the S&M B&B on Tuesday morning.

"Everybody's in quite a bit of shock," said Bishop, who lives down the street. "Stellarton is a quiet town ... It's pretty much what everyone is talking about on Facebook."

One online wag, remarking on the town's recent economic challenges, wrote: "Well, there goes the only successful business in Stellarton."

The town in Pictou County, home to 4,500 people, is perhaps best known for its long history of coal mining and heavy industry.

Another online jab aimed at residents who said they were worried about the B&B's patrons: "Apparently there is a link between barking like a dog while collared in a private room and the safety of our children. Who makes these suggestions?"

The mayor of Stellarton wouldn't comment on the matter. Other members of town council and the local police force did not respond to requests for interviews or deferred to the mayor.

"I thought it was a joke," said another neighbour, who asked not to be named. "I was pretty sure that this area was not conducive to that ... It seems to be a rather unique situation."

-- By Michael MacDonald in Halifax