Illegal in my town as well, but I checked with my nieghbors the first year I moved into town (actually the town I grew up in as a kid). Anyways, I checked with my three neighbors and they were all cool with the idea once I told them I will only shoot when no one is outside, etc. In fact, the one guy behind my house even asked me to assist his young son with shooting his own bow to earn his cub scout/boy scout badge. I was more than happy to assist.

Here's what I do:
Each summer I begin my training by shooting maybe 10 arrows a day from 10-20 yards. As the season nears, I shoot only 1-2 arrows per day in order to make certain each arrow COUNTS!! Key is that I shoot from my second flood bedroom window as this provides a realistic view and scenario as that is about the height of my stand. Downward trajectory guarantees there will be no richochets should I miss. It's been working out great for years for both safety in my yard and for my hunting success.

Key is just to be careful and as safe as possible. I won't generally shoot when my neighbors are home regardless if they are outside or inside.