Nottinghamshire Fire and Rescue attended the explosion in South Clifton on Monday night.
Villagers who had retired for the evening were brought out of their homes by the sound of muffled explosions.
“People were just going to bed,” said a member of South Clifton Parish Council.
“To our horror, anger, disgust, there was thick black smoke coming from a 500 metre fire in a field by the village hall with smoke rising 80 metres into the air.
“It appeared to be a caravan that had been set alight.”
The parish councillor called both the police and the fire service at around 9.30pm Monday night,” they said.
“If anyone of us had done that, we would undoubtedly be up on environmental charges.
“The fire was still there smouldering in the morning.”
Nottinghamshire Fire and Rescue Service said: “A crew from Collingham and a fire officer attended the scene of a fire on Moor Lane, South Clifton, after receiving a call at 9.28pm (leaving at 10.50pm).
“On arrival, it became clear that the incident was a controlled bonfire and the incident was left in the hands of the landowner."
A spokesman for Newark and Sherwood District Council said: "The case in question relates to a site in the open countryside, comprising agricultural land off Moor Lane in South Clifton.
"The Council were made aware in 2011 that a caravan had been placed on the land and was being lived in.
"Further investigations revealed further ‘development had taken place including the erection of a steel framed building and construction of a hard surface area with fencing and a commercial use within the site.
"Planning permission had not been granted for any of this development.
"In response, the Council issued 3 planning enforcement notices requiring the unauthorised use of the land to cease and all unauthorised structures, including the metal building and caravan, to be removed from the land.
"The owner initially failed to comply with the enforcement notices and was subsequently prosecuted in the magistrates court.
"The Council is currently reviewing its options to ensure that all requirements of the planning enforcement notice are complied with."
