Travellers have set up camp on Riddlesdown Common after apparently leaving Beddington Park.
A number of caravans are thought to have arrived at the beauty spot this morning.
Police and staff from the City of London Corporation, which owns the land, attended the scene.
It is thought the travellers moved on to Riddlesdown Common after being forced to dismantle illegal camps at several other locations in Croydon, including Duppas Park and Lloyd Park.
The latest camp prompted anger from some Riddlesdown residents.
One woman, who lives nearby and did not wish to be named, said: "The common has been invaded.
"Kids that go to Riddlesdown [Collegiate] school walk across there to get to school but it is almost blocked now.
"It is intimidating."
Twitter users also complained on the website.
The City of London Corporation, which owns the land, said it had staff onsite in "dealing with" the travellers' arrival.
On Wednesday last week, a group of travellers set up camp on Beddington Park in Sutton. They are thought to have left the park this morning.
Last month Croydon Council announced it would use court injuctions as part of a tougher stance against illegal camps.
Sanderstead councillor Tim Pollard said the travellers would be forced to move by 10am tomorrow.
He added: "This seems likely to be the same group who have been moved on from Duppas Park, Lloyd Park, Roundshaw Park, South Croydon Rec and a host of other places.
"We are in the process of seeking an injunction against the group barring them from all public land in the borough plus that of any private landowners who care to join us in seeking it.
"The clean up costs after they move on runs into the thousands everywhere they settle and the amount of public resource that goes in to keeping on moving them is quite staggering.
"Unfortunately it is quite likely that when they leave Riddlesdown they will simply settle somewhere nearby, so we will have to start again.
"Only an injunction will make an appreciable difference to their behaviour and we will keep you posted on progress with this."
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