Queensland Premier Anna Bligh says paedophile Dennis Ferguson's current accommodation is the best place possible.
About 1,000 people attended a community meeting south of Brisbane last night.
Many demanded that the convicted paedophile be relocated.
He has already been forced to move from one town and Police Minister Judy Spence says there is 'no plan B'.
Ms Bligh says Ferguson is under 24-hour police watch.
"If there was somewhere else that was better than that, that's where he would be now," she said.
"The accommodation that Dennis Ferguson is in and the police monitoring and the support that is being provided to that alternative or that option is, in our view, in all the circumstances, the best that we can find for now."
Families living near Ferguson say they will continue protesting until he is moved.
Ms Spence was booed and heckled during the three-hour meeting last night.
Local resident Kay Honey said the demonstrations would continue.
"We want him out. We don't want him living in this community," she said.
Attorney-General Kerry Shine's appeal against a judge's order to throw out child sex charges Ferguson was facing is due to be heard later this month.
Ms Spence has also urged protesters not to take the law into their own hands after a 29-year-old man was charged on Tuesday with threatening to hurt Ferguson.
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