Frustrated residents in Zwelihle, Hermanus were preparing to march to the municipality on Wednesday after the fragile truce over the handover of land collapsed.
"We are going to the municipality to hand in a memorandum," said community leader Sicelo Gxamesi.
He said the community was concerned that some people were trying to gain traction for their political views on the back of their push for land.
A scheduled meeting between Overstrand Municipality councillors, community representatives and MEC for Human Settlements Bonginkosi Madikizela collapsed on Tuesday night, after a tour of the proposed sites offered to landless residents.
Madikizela's spokesperson Ntomboxolo Makoba-Somdaka said the latest developments were extremely disappointing, given the work everybody had put in to identify available land.
"We worked so hard from our side," said Makoba-Somdaka.
The delegation had travelled in Toyota Quantums in convoy around Hermanus to examine proposed sites, but when they got back to the municipality for a meeting, "everything went wrong".
"We had great plans," she said.
ANC member of the provincial legislature Cameron Dugmore posted a statement to say that he had been deployed by the party to assist at Tuesday night's meeting.
"Just as the meeting was about to start, a member of the community committee objected to the presence of another community member," Dugmore stated in a Facebook update.