The temporary camp was set up on the land off Thornhill Street, next to the Jobcentre.
A police spokesman said: "On closer inspection, three out of the six caravans that were on site were discovered to be stolen. Arrangements were made for these to be recovered."
But while the officers waited for the caravans to be removed, a man acting suspiciously in the area and holding a number of carrier bags then ran off when he saw the police.
The man was chased down and subsequently arrested.
However, during the chase the officers also found two drug addicts about the inject themselves in, who were also arrested.