The NSW Reconstruction Authority (NSWRA) failed in their attempt to disconnect water to the illegal squatters on Pine Street this morning. However, they were successful with the disconnection at a house on Little Keen Street.

At 7 o'clock this morning, staff members from the NSWRA, officers from Richmond Police District and contract workers were on site to begin disconnecting the water to each house on Pine Street except for the sole owner/occupier.

Initially, one person came out from the first house to find out what was happening before others began to emerge from the neighbouring house.

One person claimed they were staying until a buyer is found, and until then, they have to look after this place, while another said the RA were doing a sneaky job by cutting off the water at that time of the morning.

The NSWRA issued a Notice to Vacate on January 21, giving the squatters one week to leave the RA-owned buyback homes so they can be assessed for relocation. They had also warned squatters that the water would be cut off to all properties.

As more squatters streamed down the road as the word spread of the water disconnection, at 7:13am the group went into a huddle to discuss what their response would be.

Police asked the owner of a car to move it forward so contract workers could access the area in front of the house, which is council-owned land. This was done.

When asked for the caravan to be towed out of the way, the owner said it was unregistered, to which police replied, "We only want you to move it up the road a little to get it out of the way, so it is okay".

As the crowd kept growing, more conversations were had with police. One squatter said, "I am sure you have better things to do", to which the police replied, "Yes, we do", hoping this exercise would run smoothly.

The next step was to ask the NSWRA staff member for more time to negotiate. "We have tried to get in touch with you and have not had a reply" was one statement. The reply reinforced the RA's position of discussing options with squatters for more than six months and the fact that the squatters illegally broke into the houses given they were fenced off and boarded up.

At around 7:20am, one man told the group, "Let's stand in the middle. They can't take all of us. Come on, let's try", trying to rally the group to block proceedings.

At around 7:25am, the group of illegal squatters gather around and on the caravan tow bar, refusing to let the tow truck move it out of the way.

At this stage, a person not living on Pine Street, walked down the street and began interacting with police. A small group moved to one side to negotiate with police and the NSWRA.

There was discussion about disconnecting the first two houses today and for the people squatting in that house to move to other properties. This was not acceptable.

The result was a community meeting will be held at the Lismore Workers Club at 1pm this Friday.

Police told the group, "This will happen. We can discuss the timing for the disconnection and the vacation of the properties."

By 8am, police and the RA staff left Pine Street to music and dancing at the first house site.

The Lismore App observed a few men walking up to the RA staff, raising their voices to express their disgust about what they perceive as government problems with housing and mental health. It was clear the female RA staff were intimidated at this point with no police protection.

As negotiations were wrapping up, the contractors and two police officers moved to Little Keen Street, where they began to disconnect the water supply. A small win for the RA.

(Contract workers disconnecting water to a buyback house on Little Keen Street)

It is clear the illegal squatters want their community to be left alone until all other buyback homes have been assessed and relocated or demolished. They have offered to vacate each house while they are being assessed and offered for sale through expressions of interest.

The RA have been negotiating for over six months, including visits from Homes NSW and Social Futures to house and help those in need through mental health services. These services have been refused.

While the illegal squatters can claim a victory today, thus a further delay in their housing situation, the ratepayers of NSW would have footed the bill for contractors on an hourly rate to be paid, as well as wasting police resources.

The Lismore App understands that the NSWRA will continue to prepare to lodge a Writ of Possession in the Supreme Court for the occupied homes at a cost, according to the RA, of approximately $40,000 per house.

After witnessing events firsthand this morning, the most likely future outcome is for police to physically remove the illegal squatters once the writs have been received and executed.

Questions will be asked why arrests were not made today. Keep in mind the mains water pipes are on Lismore City Council land.