Annoying Neighbors! What can I do

We built a great house in a reasonably close suburb to CBD and one year later this neighbour moved in to the next door house, renovated it and extended the deck so they have full oversight to our living room. Discussed this matter with them but they didn’t care , talked to council and it seems that they don’t care either. Loosing our privacy is one thing ( annoying enough to develop a sense dislike toward them ) they have party every few weekend and invite a dozen of families (each with 2-3 kids). We literally don’t have a peaceful weekend in our own house. I can’t understand why these people can’t appreciate the fact that living in a dense urban area is not the same as living in a farm or a acreage property. I am wondering if anyone out there had similar situation and can suggest any resolution.

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