Riot police were hit with missiles including bottles as more than 1,000 officers battled with dozens of middle-aged men on the streets Eltham, south-east London.
Witnesses reported that many of the 200 men were chanting in support of the English Defence League, the controversial Right-wing group.
The group had promised to defy police orders and mobilise their own forces to protect their families and businesses from mobs of looters.
Last night hundreds of police from eight separate forces tried to restore calm from the mainly white, middle aged men.
Earlier they had claimed they were protecting local shops and businesses for a second consecutive night.
With shops and pubs in the high street shut, the group, men aged in their 20s to 50s, brought carrier bags containing beer and drank and sat on benches.
Riot police eventually restored order after charging at the crowd. At least one person was arrested.
Around 60 EDL supporters had gathered in the square in the town drinking cans of beer and chanting "We love you England".
Officers had missiles thrown at them this evening, a Scotland Yard spokesman said.
Police have dealt with the disorder and the group has been dispersed. Police remain on the scene. She declined to say whom the group were or how many police were in the area.
Local police denied the group were comprised of EDL members.
But furious locals vented their anger at what they described as outsider vigilantes arriving in the area and sparking fights, particularly with police.
Over the past few nights, residents in London have taken to the streets with baseball bats, swords and hockey sticks to defend their property after the police lost control.
There have been concerns that far-Right organisations had tried to take advantage of the social tensions by hijacking the vigilante armies.
The EDL claimed that about 100 of its members were helping to protect the streets of Enfield on Tuesday night.
The league was also encouraging people to join a group of men in Eltham planning to guard their high street.
As many as 1,500 Sikhs, some in their eighties, had patrolled west London neighbourhoods around temples in Southall and Hounslow on Tuesday night, chasing rioters away.
In Dalston, east London, Turkish shopkeepers armed with bats and pool cues saw off a gang of masked men.
In Hackney, east London, Kingsland High Street was lined with Turkish and Kurdish men on Tuesday night, some carrying sticks.
In Enfield, north London, an estimated 300 locals turned out to protect property on Tuesday after two nights of rioting.
Police said anybody taking the law into their own hands, however well intentioned, would divert police resources away from the looters and arsonists.
Steve Kavanagh, the deputy assistant commissioner of the Metropolitan Police, said: What I dont need is these so-called vigilantes, who appeared to have been drinking too much.
These are small pockets of people. Theyre frustrated, theyre angry, and thats totally understandable.
But the support that we need is to allow those officers to prevent looting and crime. He said it was ironic that media pictures showed looting in areas where there were no police available while officers were being diverted to stop vigilantes elsewhere.
That needs to stop, he said.
Under the 2008 Criminal Justice and Immigration Act, home owners who use reasonable force to protect themselves should not face prosecution.
However, they must not use more force than necessary.
Experts say this can come down to a subtle difference, with anyone who chases an attacker likely to be at risk of committing an offence.
pls come you will have a blast and will be 100%safe, the olympics will be in stratford and have ultra tight security in place with CCTV's, undercover police and snipers 
