The NSW government says a man refusing to move from his public housing in Millers Point is not entitled to it, as protesters block his eviction.
A group of protesters gathered outside Peter Muller's High Street home on Tuesday morning to block access for the anticipated of the sheriff's arrival to evict the 57-year-old.
But Mr Muller agreed to move out months ago and is not entitled to public housing because he part owns a property in the Southern Highlands, the NSW department of family and community services (FACS) said in a statement.
"Forced eviction is a last measure ... when all other avenues to achieve a fair outcome had been exhausted," the FACS statement said on Tuesday.
It was also noted Mr Muller worked as an electrician, which made him ineligible for support and that he had been given time to arrange alternative accommodation.
The state government announced in 2014 it would sell 300 state-owned properties in the prime real estate location, adjacent to the historic Rocks district, to raise up to $500 million.
The government claimed the average annual maintenance bill for a Millers Point house, some which are heritage listed, was high compared to homes in other areas.
Mr Muller's Southern Highlands property is "just a block of dirt in the bush" with no electricity or running water, resident and supporter Barney Gardner told AAP.
He also questioned whether Mr Muller was being targeted because of his activism and the area he lived in.
"If Peter lived out Mt Druitt, or out in Campbelltown, would they do the same?" he said.
Mr Muller has lived at his current address for seven years but in the area for two decades.
"When they first told us they were going to sell this place they told us the state was broke and they needed the money," he said.
But since then the government had sold of millions of dollars worth of public housing.
"Enough is enough," Mr Muller said.
The sheriff had still not appeared by the afternoon.
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