The Walsall-born director returned to the Black Country with an exciting new project This Town, depicting Coventry and Birmingham in the late '70s and early '80s.
Photos taken by the Express & Star show the crew packing up after filming over the weekend and into Monday morning, which saw actors dressed in old firefighter uniforms tackling what passersby called a 'controlled blaze'.
School Street, Skinner Street and Worcester Street were closed for filming.
Those passing through the Skinner Street area of town would have witnessed a scene of carnage, with overturned cars, a burnt out van, and rubble strewn across the street.
Some posted on Facebook to share their excitement about the Steven Knight return – there was speculation that the action was leading up to a Peaky Blinders follow on, but the Express & Star received comformation from a crew member that it was a new project.
Becky Clarke, who passed by the scene earlier today, said: "We saw this earlier and wondered what was going on! Especially the burnt out van!"
Another user, Bal, commented: "Not seen so much activity in the around the town centre for a while."
Councillor Ian Brookfield said: "The filming is wrapped now, after School Street and Worcester Street were closed for Sunday and a bit of Monday. We have a very good relationship with the production company.
"They were keen to work with us again, as a council and city. It is not easy to do that kind of work in a city, and many don't allow their streets to be utilised in this way. But they are welcome back to Wolverhampton any time.
"Lots of local people work on the set, and we have worked with Steven Knight and the company before.
"It keeps local money local, and entices people who follow his work to come and look at the areas he films in – it is a very positive experience."