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Witnesses said some of the people attending the event had consumed alcohol and became aggressive towards the police when they were told they were in breach of coronavirus regulations and needed to leave.
Officers have arrested one person on suspicion of an unrelated theft, and 42 people were reported for consideration for Fixed Penalty Notices.
Photographs from the incident show the police lining up outside the gates of the site where the event was being held, and onlookers said a police officer had a conversation with attendees through the metal gates.
More photographs show police officers speaking to attendees on the street, which was surrounded by police vehicles, while one man appeared to be holding up a white flag.
A video shows the large group of people then arguing with the police in raised voices as they left the illegal gathering.
One resident also claimed that another event was held earlier in the week on Tuesday (12 January). That event allegedly had '250 people drinking in the street'.
The witness, who did not wish to be named, said: "On Tuesday they had another wake. It all got a bit rowdy and the police started to talk to them to try to stop it. They didn't get very far.
"Then [they] re-grouped [on Thursday] and had another wake."
"Over 100 police officers arrived to stop the wake where over 70 people gathered.
"These people were travellers in their own compound.
"16 police vans took over the roads and all lined up outside asking the huge group to disperse."
A spokesperson for the Metropolitan Police said: "We are aware of repeated incidents this week regarding large numbers congregating in the vicinity of Clyde Road, N15.
"On Thursday, 14 January, 42 were reported for consideration of a fixed penalty notice.
"A policing plan is in place in conjunction with the local authority to prevent any further incidents.
"A dispersal zone has also been authorised in the area and residents are likely to see an increased police presence this evening and over the weekend."
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