Pro-I.R.A. graffiti warning people against passing information on to the police has appeared on the front of a building which stands only a few hundred metres away from 29 journalist, Lyra McKee, was shot dead by a masked gunman last month.
The three slogans read: 'IRA is here to stay', 'Informers will be executed' and 'IRA'.
The graffiti was daubed on to the facade of the Old Library Trust building on Central Drive.
The threat to murder anyone passing on information to the P.S.N.I. came only a few hours after police investigating the murder of Lyra McKee confirmed they would guarantee anonymity for anyone who comes forward with evidence that could be used in a future criminal trial.
One local person who asked to remain anonymous said the slogans "have put the fear of God" into the community.
"It's very tense in Creggan at the moment and the carry on overnight has put the fear of God into people living here," said the local resident.
"People want to do the right thing but when you see stuff like this going up it's understandable why they decide not to," the resident added.
Talented journalist, Lyra McKee, was killed in Creggan on April 18 when a masked gunman opened fire on two heavily armoured P.S.N.I. vehicles.
People in Derry, right across Ireland and the rest of the world condemned the killing and told those responsible they were "not wanted here anymore".
Ms. McKee was laid to rest after a funeral service in St. Anne's Cathedral in Belfast on April 24.
The gifted writer was planning to propose to her girlfriend, Sara, while on holiday in New York later this month.