Bowing to public pressure, mayor Kitisak of the northern Sena town has ordered the removal of more than two dozen phallic symbols used in the rituals at a local fire station to pray for rain according to animistic folklore.
Thailand has been gripped by drought for the last six months.
But residents people believe the phalluses, the largest being three metres (10 feet) long, triggered a spate of fires instead of rain.
They threatened to hold a mass rally if the mayor did not grant their wishes.
"The phalluses were brought into town last month as part of a rite to appeal for rain from the deity but people said they brought fire and bad omens instead of rains," a municipal official said.
At least four fires had broken out in the town since the phalluses arrived, she said.