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It seems to me that your neighbor thought you were doing something "illegal" (otherwise why call the Sheriff?) Has she been properly "educated" now? If so, I'd let it slide. The fact that you are going to develope that area into a garden railroad will p*ss her off FAR more than anything else you could devise!! Of course, it's also possible that she may try to cause trouble in the future (make that probable) so I'd be prepared for "visits" from the local constabulary!