The shocking notice was taped to a lamppost by the Sainsbury's shop in Leith Walk, across from Albert Street.
The reads: "Begging is now prohibited in the Leith area of Edinburgh.
"Anyone found to be begging will be arrested and fined £300 and 6 months in prison.
"Anyone that gives money to beggars will be fined £1000.
"The giving of food is permitted.
"There has been an increase of antisocial and threatening behaviour towards members of the public.
"This will not be tolerated."
Councillor Amy McNeese-Mechan, vice convener of Culture and Communities, said: “We can confirm that this sign has not been posted by the council and any found will be removed as soon as possible.”