A six-month trial of the scheme will focus on Woodcote Primary School, Heavers Farm Primary School and St Chads RC Primary School, all in Croydon.
The roads around the school reportedly became so gridlocked that fights began to break out between parents vying for a space to drop off their little ones.
However locals are concerned that the move stands to make the roads more dangerous.
Angry residents said the longer walks would make life difficult for pregnant women and the elderly.
They also worried the parking problem would just be moved further away from schools, causing traffic chaos in more roads.
Mum Martina Coady, who was dropping off her six-year-old daughter Caitlin at St Chads school, told the Mail Online: “I fully understand the residents’ point of view, but it’s difficult for us as well.
“I’m not within walking distance so it’s a bit of a pain to come.”
She added: “It’s going to be difficult for me now because we’re all parking down the road and it’s going to fill up. The council will probably put restrictions on there too.”
Ms Coady said the council had made the change in a cynical move to get profit out of parents.
She said: “Wherever the council can make money they make money.”
The council has introduced permits for drivers who want to reach three primary schools in the London borough – which will primarily be given to those who live in the area.
Parents who live further away will have to walk from a place where they can park in another road.
Those with children to drop off said they were sceptical about how it would work, and said the council had not consulted on the plans, which would make it harder for them to bring their kids to school.
Residents living in the neighbouring roads to the school feared their streets would be packed with traffic and impossible to navigate after the change was made.
But those living on the roads where the schools are located have praised the initiative.
Tracy Stewart, who was dropping off her nine-year-old son Luca at St Chads, said the road had always been a “nightmare” during school drop-off hours.
She used to struggle to get her car out so she could drive to work – but has found it much easier.
Croydon Council emphasised that the introduction of the pedestrian zone was not a permanent measure, and residents will be able to give feedback at the end of the six-month trial period.
Councillor Stuart King, who looks after transport and the environment on Croydon Council said: “These roads are a school run traffic headache for everyone, so this trial is about improving child safety and boosting walking and the environment.
“By getting hundreds of individual parents to park legally outside these pedestrian zones or – even better – at home, we hope this will make a big difference.”