A traveller from Crays Hill is set to stand for election to Essex County Council this year in a bid to fight off eviction.
The candidate, who will be formally selected next week, will campaign solely against Basildon Council's plans to evict 50 families from the Oak Lane site in May.
However Malcolm Buckley, leader of Basildon Council, said becoming a councillor to fight eviction would be illegal because it would result in a breach of councillors' code of conduct.
He said: "The candidate would have a financial interest in the site, which goes against election law."
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