Jack Straw has ordered a crackdown on travellers in Sussex who break the law or behave anti-socially.
The Home Secretary has told police and councils not to tolerate such behaviour "in any circumstances".
He has issued new guidance on allowing unauthorised traveller camps.
Ministers are concerned that the concept of "toleration" in previous Government advice was widely misunderstood by local authorities and police. Some councils felt this meant they could not deal with unauthorised camps even if travellers were committing offences or causing a nuisance.
Mr Straw stressed police and local authorities had powers to deal with troublesome camps but sometimes failed to do so because of the confusion.
The Home Secretary said: "It is completely unacceptable that a small minority of law-breakers feel entitled to blight the lives of the community with anti-social behaviour and criminal activity."
All breaches of the law by gipsies or travellers should be dealt with by the police as they would with any other person. Councils may start immediate moves to evict anti-social travellers who refuse to abide by a departure date from an unauthorised camp.
But if travellers are not causing problems, a mutually-acceptable leaving date could be agreed. Councils should then consider providing a temporary water supply, rubbish collection and toilets, particularly if there were babies, children and other vulnerable people in the group.
Educational needs of children should be an "important consideration" in deciding a departure date, which could be delayed to the end of term. If a traveller had recently given birth, the group could be allowed to stay longer than originally agreed.
Councils should produce leaflets explaining their "code" for dealing with unauthorised camps. Officials should regularly visit them to ensure they are not causing problems for residents.
Geoffrey Theobald, opposition Tory leader at Brighton and Hove Council and ward councillor for Patcham, said: "I strongly welcome this and invite the council to tear up their current strategy and incorporate these new guidelines. The present strategy is an open invitation for travellers to come here."
A spokeswoman for Brighton and Hove Council said the council had already enforced most of the guidelines issued by Jack Straw.
She said the council would be producing a leaflet for the public explaining its code towards travellers.
Several travellers' camps were set up on sites around Brighton and Hove this summer, including Stanmer Park, Carden Park and Hollingbury golf course.
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