Residents of Fochville, many of whom live in shacks, have been protesting since yesterday, demanding better homes and access to running water.
But the crowd went on the rampage Wednesday, burning the house of a councillor representing the country's ruling ANC party and looting shops.
A police officer was also attacked and injured during the violence.
"The protest has been going on since Tuesday and today it turned violent," said police spokeswoman Katlego Mogale.
"The people were throwing stones at the police and blocking the streets with burning tyres, we had to act to restore order."
The angry community shouted down the local mayor as he tried to address the crowd, accusing him of ignoring their plight.
Violent protests over poor services often erupt across the country, a symptom of growing dissatisfaction with the ANC-led government.
