The drone is being used to to keep an eye on work by Weston Homes at its Grand Central site in the city.
Residents claim the drone has spotted breaches of planning permission on the site and restrictions on working hours.
A statement from Cambridge City Council to the Cambridge News said: “Council officers are aware the residents have used airborne drones to view the site and that this appeared to demonstrate that works were being carried out which were not in accordance with the approved plans.
“Concerns have also been raised about the way in which the development is being carried out. These relate to hours of work, mud on the highway, access and egress from the site by delivery vehicles and contractor parking.
“Site visits were carried out in June and no breaches of working hours were witnessed. Ongoing monitoring is being carried out in relation to all of the issues raised by residents and the ward councillor.
“To date no formal planning enforcement action has been undertaken against the developer. However, officers have written to them to remind them of their obligations under the terms of the planning permission. The site is under review as an active enforcement investigation by the council.
“The council will investigate any allegations made by residents or other interested parties.”
Weston Homes CEO Bob Weston said he was unaware of any investigation and the scheme fully complies with its planning approval.
He said: “We are working very closely with the highly professional team at the Cambridge City Council planning office, to ensure that Grand Central is developed in accordance with the terms of the planning approval.
“A recent planning committee meeting highlighted that Cambridge City Council is keen to ensure that Grand Central is built in accordance with the planning approval terms and that the local residents may employ a drone to be on site during the construction, which they are welcome to do.
“We have no intention to deviate from the approved planning details for the site. At Weston Homes, we take pride in delivering high quality homes to the highest standard and it is disappointing that Weston Homes is being portrayed poorly because of the site’s history with previous developers.”