The Women in Love author directed the insult at Pangbourne while inquiring about cottages to let in August 1919.
He wrote: "Pangbourne is repulsive - it sort of smells - women use scent on their clothes, and petrol plus river plus pavement...  I suffer by the nose".
The note was sold by auctioneers Lyon and Turnbull in Edinburgh on Wednesday.
It was addressed to his friend Bertie Herbert Farjeon at a time when Lawrence was leading an itinerant lifestyle after being forced out of his Cornwall home following accusations of spying.
After asking Bertie whether the cottage he wanted was vacant, the writer declared that he was "so sick of mankind".
Three months after the letter was posted he left Britain for good as part of a self-imposed exile.
Lawrence, whose other novels included Lady Chatterley's Lover and The Rainbow, was born in Eastwood, Nottinghamshire, in 1885 and died in France in 1930 aged 44.
A letter written by DH Lawrence in which he describes a Berkshire village as smelly has sold for £1,000 at auction.