Swarms of flies have descended on the rubbish at the open tip on Upper Wharf Street, close to Salford University.
The Environment Agency said it had banned new waste being brought there.
Land Restoration Northern Ltd, which runs the site, has until the end of November to meet standards or face prosecution, the agency said. The firm has been unavailable for comment.
Local resident Graham English said he was unable to open his windows at night and had begun a video diary.
He said the flies were keeping him awake.
Tracey Rimmer, from the Environment Agency, said it had taken steps to issue enforcement action against the company.
The agency said it followed "extensive investigations into odour, dust and fly issues in the area around the site".
It has suspended the importation of waste on to the site and asked the company to move older waste.
A waste company has been criticised after flies infested a rubbish tip in Salford.