Two bars in the town were forced to remove two women from their premises on Saturday night.
The women, both foreign nationals, approached a number of men offering them sex for sale.
One of the bar owners was told of the situation and escorted the woman from his bar.
He told another bar owner who also refused the women entry a short time later.
The bar owner, who asked not to be named, said he was shocked by what had happened.
“These women really had a cheek. I couldn’t believe what was happening.
“I know everyone is finding it difficult to make money these days and some people are really finding life tough but I couldn’t allow this.
“My customer were shocked by what was happening and I tried to remove the woman as quietly as possible.
“I simply cannot allow my customers to be harassed and confronted by these women.
“To be honest I’m still in shock. I had heard that Letterkenny has prostitutes but to see them coming into your own bar has left me shocked,” he said.