The Ministry of Defence is considering placing surface-to-air missiles on residential flats during the Olympics.
An east London estate, where 700 people live, has received leaflets saying a "Higher Velocity Missile system" could be placed on a water tower.
A spokesman said the MoD had not yet decided whether to deploy ground based air defence systems during the event.
But estate resident Brian Whelan said firing the missiles "would shower debris across the east end of London".
The journalist said: "At first I thought it was a hoax. I can't see what purpose high-velocity missiles could serve over a crowded area like Tower Hamlets.