A number of items have been removed from a house in the area for examination.
The alert at Strand Road is ongoing at present.
A 39-year-old man was arrested this morning under the Terrorism Act 2000.
He remains in custody at the serious custody suite in Belfast for questioning about a number of incidents.
Police say the incidents are being treated as “criminal” and not “terrorist related”.
They also say it is not related to the murder of Lyra McKee, who was shot dead last Thursday night in Creggan by a lone, masked dissident republican gunman.