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There is a strong police presence in Kwa-langa and Rosedale in Uitenhage, where angry residents are protesting and burning tyres.
Police spokesperson, WO Basil Seekoei says police used rubber bullets and stun grenades to disperse the crowd.
He says the protest action started on Saturday, but flared up again on Thursday.
Seekoei says residents are unhappy about a shortage of housing, and are currently erecting shacks on private and municipal property.
He says a High Court interdict against the invaders was obtained on Wednesday.
No arrests have been made.