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Members of the Public Order Police (POPS) have been deployed around Makhanda after taxi drivers and community members made their way to town blocking roads and forcefully closing shops in the CBD.
Police spokesperson Brigadier Thembinkosi Kinana says employees were instructed to go home and schools have been closed.
He says there is a strong police presence in town and protesters have been warned not to engage in activities that will lead to confrontation with law enforcement.
Last month, members of local taxi associations took to the streets to protest against the current state of affairs in the Municipality.
A memorandum was handed over to express concerns about the state of the roads, water supply and several other service delivery issues.
Meanwhile, the Unemployed Peoples Movement says the only thing that will satisfy residents now is for the Premier to dissolve the Makana Municipality Council.
Spokesperson, Ayanda Kota, says residents are angry about the deteriorating situation in Makhanda.
He says the MEC for Cooperative Governance and Traditional Affairs Xolile Nqatha came to meet with Makana councillors on Tuesday but failed to address the community who demanded his attention.
"He said he will not come to residents, if something happens, he cannot be held accountable for that. Now instead of coming, he's sending the police to shoot, that's what that statement means."
"Now the residents are quite angry, so it's a total shutdown again. Residents are very clear in insisting that we don't want these councillors. This thing (Makana Council) must be dissolved."
The municipality said several areas are without water on Thursday because they could not open valves due to protesters blocking the roads.
The municipality issued a brief statement on their Facebook page stating that essential services and even emergency work such as electrical faults or leaks cannot be attended to as a result of the strike action.
