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.
“They say they’ll only use them as a last resort, but… you’d shower debris across the east end of London by firing these missiles.”
Mr Whelan, who claims to have seen soldiers carrying a crate into the building, said his property management company put up posters and gave out the leaflets on Saturday.
He continued: “They are going to have a test run next week, putting high velocity missiles on the roof just above our apartment and on the back of it they’re stationing police and military in the tower of the building for two months.”