Anti-vaccination protesters camping and parked near the Patrick White Lawns have refused to move on at the direction of ACT Policing.
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The two groups faced off on Wednesday afternoon, with police eventually retreating.
ACT Policing said one woman was arrested and charged with assault police. Two men allegedly interfered in the arrest of the woman; they have also been arrested and will be charged with obstructing police.
ACT police said they attempted to "provide written information" to the protesters. Footage appears to show dozens of officers, including some special forces officers, at the makeshift campsite.
"The information advised them they were camping and parking illegally and may be subject to fines if they remained in the area," police said.
ACT Ambulance Service paramedics attended to treat two people with minor injuries but no one was taken to hospital.
Social media footage appears to show the protesters - who have come from around Australia - refusing to move on, as police formed a barricade and then left after 5pm.
The anti-vaccination mandate protests started on Monday, where a group of people congregated on the Parliament House lawn.
The Canberra Times understands the group - part of the Millions March Against Mandatory Vaccination rally - are planning on staying in the capital until at least February 8, when Parliament will sit.
More protesters are travelling to Canberra from around Australia. The rally is also known as the "2022 Official Convoy to Canberra Terra Australis".
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The National Capital Authority said they requested that police clear the Patrick White Lawns (adjacent to the National Library of Australia), East West Lawns, the Questacon car park and other nearby areas.
A NCA spokesperson said unauthorised camping was not permitted in the parliamentary precinct or NCA-managed lands.
"The national capital has many places where people can exercise their right to communicate their opinions and ideas through peaceful protests and demonstrations," they said.
"Our democracy recognises this right which is subject to the general law and must be balanced against the rights and interests of others in the community.
"Of paramount importance is the protection of public safety and public assets, the maintenance of the peace, and fair and equal access to public areas."
Access to the area is needed for urgent set up, grounds preparation and maintenance for upcoming permit holding events, the NCA said.
More to come.
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