Richard Gray, 36, is accused of possessing an imitation firearm with intent to cause fear of violence near Heene and St Mary's Primary Schools in Worthing.
Mr Gray was charged on Thursday and pleaded not guilty on Saturday at Brighton Magistrates' Court.
The defendant, of Cortis Avenue, was remanded in custody and will appear at Hastings Magistrates' Court on 15 May.
He has also denied possessing of a knife in Victoria Park.
Police said a man reported being shown a firearm close to Victoria Park and Norfolk Street in Worthing, at 14.15 BST on Thursday.
A woman said she was shown a gun in a bag in Stoke Abbott Road at 21:10.
A man has denied brandishing a plastic gun and a knife near two schools.