A group of protesters started burning tyres at the entrance to the informal settlements at De Doorns, near Worcester, in the Western Cape, on Wednesday, South African Broadcasting Corporation radio news reported.
Residents threatened to blockade the N1, which runs past De Doorns and Worcester.
Last week, residents converged on the Worcester municipal offices, demanding the provision of houses and accelerated service delivery.
A large police contingent arrived at the scene to monitor the situation, the report said.
The protest is the latest following others around the country over the past several months. — Sapa