The report shows that in the last nine months of 2006, there were 253,557 applications to intercept private communications under surveillance laws. It is understood that most were approved.
In that period 122 local authorities sought to obtain people's private communications in more than 1,600 cases.
Councils are among more than 600 public bodies with the power to monitor people's private communications.
Senior council officers are given the power to authorise surveillance in order to catch fly-tippers, benefit fraudsters and rogue traders. However, intelligence agencies must seek the permission of ministers while police need approval from chief constables.
Eric Pickles, the Conservative local government spokesman, said the use of surveillance powers against suspected fly-tippers was "completely over the top."