Transport Minister Fikile Mbalula says people illegally occupying the railway tracks in Langa will be relocated by the end of November.
Land has been identified to accommodate the more than 1,700 households involved.
The process is expected to cost over R100 million.
But the location of that land is being kept secret – in an attempt to prevent illegal occupation.
The Minister – together with officials from PRASA and the City of Cape Town – held talks with the occupiers on Tuesday.
Mbalula says the identified land must be protected.
“I’m saying to SAPS shoot, but not to kill. Anyone who is going to erect a shack here must be dealt with. I’m not going to accept that people are going come here and put up shacks. The land must be guarded”.